GBP/EUR: Pound Steady A Boris Johnson Switches Attention To Policies

After dropping lower in early trade, the euro US dollar exchange rate has picked up sharply. The pair declined to a nadir of US$1.1074, before rebounding to current levels of US$1.1103. The euro is still struggling to push meaningfully above the key $1.11 level.

Eurozone economic data was once again in short supply on Tuesday. This left investors to focus on Brexit developments. News that the UK opposition party will finally back the Prime Minister Boris Johnson’s call for an election sent the euro higher. This is because Boris Johnson is the favourite in the polls. If he wins the election, he should have a stronger mandate from the UK electorate to push his Brexit deal through Parliament without further problems. The means that the UK could be leaving the EU on 31st January, with a plan in place.

Brexit with a deal is preferable to Brexit with no deal for both the UK economy and the eurozone. A Brexit deal would remove uncertainty and risk whilst keeping trade moving. The move towards a UK election is also a move towards a Brexit deal being achieved on 31st January. This lifted the euro off its low.

There is no high impacting eurozone data due for release today. Instead investors will look ahead to a skew of eurozone data due to be released tomorrow including German inflation, German unemployment, French GDP and eurozone consumer confidence.

US Consumer Confidence Up Next

The US dollar was holding steady in early trade on Tuesday as investors look ahead to a very busy second half of the week as far as macro-economic releases are concerned. Today dollar investors will focus on US consumer confidence. Analysts are predicting that consumer confidence jumped to 128 in October, up from 125.1. A strong labour market and robust wage growth is keeping household sentiment buoyant. However, last moth retail sales were unexpectedly weak, indicating that consumers held back on spending. Today’s data should help clarify how the US consumer is holding up.

Looking ahead, tomorrow sees the release of US GDP and then the US Federal Reserve monetary policy announcement. Analysts are expecting the Fed to cut rates again.

What do these figures mean?
When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute.

For example, it could be written:

1 EUR = 1.12829 USD

Here, €1 is equivalent to approximately $1.13. This specifically measures the euro’s worth against the dollar. If the U.S. dollar amount increases in this pairing, it’s positive for the euro.

Or, if you were looking at it the other way around:

1 USD = 0.88789 EUR

In this example, $1 is equivalent to approximately €0.89. This measures the U.S. dollar’s worth versus the euro. If the euro number gets larger, it’s good news for the dollar. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views