The British pound continued its rise on Tuesday against the dollar and the euro, in a market catching its breath after the euphoria of the previous session triggered by the announcement of a positive outlook for a vaccine against Covid-19.

Around 10:00 GMT (11:00 in Paris), the pound gained 0.60% against the dollar, to 1.3247 dollars for one euro. Against the euro, the pound gained 0.69% to 89.12 pence per euro. Moments earlier, it had reached $1.3254 for a pound and 89.03 pence for a euro, its highest in nearly two months.

"Any sign that a vaccine is going to be found will help the outlook for the pound, given the extent of the economic damage" caused by the pandemic, Sucden analysts summarized.

England has entered a new month of lockdown, and the Bank of England has lowered its economic forecast, now expecting gross domestic product to contract by 11% in 2020, with a more moderate rebound of 7.25% in 2021.

The risk appetite that blew in the markets after the Pfizer/BioNTech announcement has therefore particularly benefited the pound sterling, even as negotiations between London and Brussels on a post-Brexit trade agreement continue.

"There are risks of sudden movements on the pound in case of shock statements, but the market believes that behind the debates will reality, we must find an agreement before Christmas," said Neil Wilson, an analyst at Markets.com.

The euro (-0.07% against the dollar) did not benefit from such enthusiasm.

"The interventions of members of the ECB (European Central Bank) will probably limit the rise of the euro, because the December meeting of the institution is approaching, with a possible rate cut at the key. It is not certain that the information about the vaccine will dispel all the concerns of the ECB," Commerzbank analysts explained.