Pound euro exchange rate: GBP rallies against EUR after weak Eurozone data
GBP rallies against EUR (Image: Omar Marques/SOPA Images/LightRocket via Getty Images)
The pound is pushing back against the euro at the start of today’s session as Prime Minister Theresa May continues to try and sell her Brexit deal to a divided country. Following the accusation by DUP leader Arlene Foster that she had “rolled over” to the EU, Mrs May responded: “No, we have been resisting many of the things that the European Union wanted to put in this deal. When you negotiate neither side gets 100 per cent of what they want.”
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Over in the Eurozone, Gfk consumer confidence figures were released for Germany this morning, showing a worse-than-expected drop from 10.6 to 10.4 for the month ahead, helping the pound push back against the euro.
The producer price index for Italy was released this morning for October, showing a year-on-year increase from 4.7% to 5.8%, and since the previous month it had increased from 0.4% to 1.3%.
Higher producer prices are generally viewed as negative as they relate to unavoidable costs which are usually passed on to consumers.
At the same time the M3 money supply – which is a broad measure of money that counts all deposit accounts and liquid assets – was released by the European Central Bank (ECB), showed better-than-expected growth, which could be perceived as bullish for the euro, as it increased to 3.9 per cent from the previous 3.6 per cent.
In the wake of these data releases the GBP/EUR exchange rate has continued to climb.
The Bank of England is to release a financial stability report later on today (Image: DANIEL LEAL-OLIVAS/AFP/Getty Images)
Brexit-related news seems likely to keep Sterling volatile, as Brexit continues to be the catalyst for movement for the UK currency.
Later on today the Bank of England is set to release a financial stability report featuring bank stress test results, with traders keen to know how the UK financial sector would likely hold up following an external shock or recession.
The euro could push back against the pound tomorrow as there are a lot of data releases early in the session, with the German unemployment rate predicted to drop.