EUR/GBP Exchange Rate Rises on ‘Grounds for Optimism’ for Europe’s Reopening
The Euro Pound exchange rate rose by 0.4% today after Germany downgraded its Covid-19 risk level, buoying confidence in the recovery of the Eurozone’s largest economy. The pairing is currently fluctuating around £0.86.
The Euro (EUR) benefited from the German government’s downgrading of the nation coronavirus risk to ‘high’ from ‘very high’.
German health minister Jens Spahn said that the Government now has ‘grounds for optimism’ thanks to the nation’s rollout of Covid-19 vaccines.
In Eurozone conomic data, today saw the release of the latest Eurozone unemployment rate figure for April, which fell below forecasts from 8.1% to 8%.
EUR/GBP Exchange Rate Rises as UK Economic Outlook Remains Uncertain
The Euro Pound (EUR/GBP) exchange rate rose by 0.4% after UK retail sales slowed in May after April’s strong surge following the easing of the UK’s lockdown measures. The pairing is currently fluctuating around £0.86.
CBI economics commented on the data:
‘Retailers reported sales volumes as being broadly average for the time of year in May, and they expect volumes to remain in line with seasonal norms next month.’
As a result, GBP investors have become more cautious about the outlook for the British economy, as the outlook for the UK economy still remains relatively uncertain.
The Euro Pound (EUR/GBP) exchange rate is edging higher this morning following the news that Europe will reopen its borders to those who have been fully vaccinated.
At the time of writing the EUR/GBP pairing are trading around the £0.8632 as concerns over the Indian variant of the virus cause Sterling investors to remain cautious.
Euro (EUR) Supported by EU Border Restrictions Easing
The Euro has found itself edging higher against the Pound since markets opened this morning.
News that the European Union (EU) countries would ease coronavirus travel restrictions on non-EU visitors as long as they are fully vaccinated was welcomed by investors.
The Euro Pound (EUR/GBP) exchange rate is mixed this morning after the latest consumer price index from the US rose more than expected as inflation worries continue to dominate markets.
At the time of writing the EUR/GBP pairing are trading around 0.8596 as Sterling finds support in the latest lockdown easing measures across the UK.
Euro (EUR) Investors Jittery over Inflation Worries
The Euro has been mixed this morning as markets digest the latest rise in inflation in the US released yesterday afternoon.
Amid the US dollar regaining traction the Euro has suffered due to the negative correlation between the pair, as inflation worries weighs on risk appetite.
The Euro Pound (EUR/GBP) exchange rate is steady this morning after the latest inflation data from Germany met forecasts.
The Pound has also found itself supported following the GDP data from the UK during Q1, with the EUR/GBP pairing currently trending around 0.8586.
Euro (EUR) Supported by German Inflation Rate
The Euro has been able to limit any losses against the Pound this morning following the latest inflation rate data from the Eurozone’s largest economy, Germany, which came in above forecasts at 2% during April.
Further supporting the Euro today are the latest industrial production figures from the Eurozone which came in above forecasts at 1.0% during March.