GBP/EUR Exchange Rate Steadies, Euro Investors Jittery after Signs of Slowing Eurozone Economy
The Pound Euro (GBP/EUR) exchange rate has been rangebound today and is currently trading in the region of €1.1415.
Sterling (GBP) is steady against the Euro (EUR) today with the single currency still remaining weak after last week’s disappointing Eurozone economic data, which indicated that the region’s economic output is slowing.
The Euro has remained unappealing to investors at the start of the week with no Eurozone economic data released.
The Pound, meanwhile, failed to gain any ground on the Euro following the publication of the Rightmove house price index figures for February.
The report showed that the affordability of housing had improved, but that property asking prices increased at their slowest pace since 2009.
Brian Murphy, the Head of Lending at the Mortgage Advice Bureau, commented:
However, both Pound and Euro traders are likely to be fixated on Brexit developments today, with Prime Minister Theresa May having called upon all Conservative MPs on Sunday in a bid to bolster support for her withdrawal deal.
Many Pound investors, however, are remaining cautious as a no-deal Brexit still remains on the table.
Pound Euro (GBP/EUR) Exchange Rate Static as Parliament Factions Grow
Today also saw the resignation of 7 Labour MPs, which has further indicated that there are deep factions within the House of Commons.
Mike Gapes, a former Labour MP, commented on his resignation:
This has caused further alarm for Sterling traders, with fears that the mounting pressures within Parliament will inhibit the breaking of the Brexit stalemate that is continuing to haunt UK markets.
Theresa May is due to return to Brussels this week for talks with the President of the European Commission, Jean-Claude Juncker, amid increasing scepticism – from both the EU and the Commons – over May’s Brexit strategy.
John McDonnell, Labour’s Shadow Chancellor, commented:
GBP/EUR Forecast: Euro Could Gain if German Economic Sentiment Improves
The GBP/EUR exchange rate is likely to remain focused on Brexit developments this week, although any signs of the UK’s wage growth data improving would be Pound-supportive.
However, tomorrow will also see the publication of the German ZEW survey of economic sentiment for February. Any signs of an improvement in sentiment may give the Euro a boost.
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