GBP/EUR: Pound Advances Versus Euro After Tough Previous Week

The British pound is higher against the euro on Tuesday.

The pound was bolstered by a widespread market recovery that saw stocks surge and bond yields rise on hopes that United States was on the verge of agreeing a coronavirus relief package.

Gains in the euro were capped by dire economic data that imply the Eurozone economy is likely already in a recession.

Pound versus euro was higher by 143 pips (+1.33%) to 1.0907 with a daily range of 1.0724 to 1.0928 as of 4pm GMT.

The currency pair rebounded from yesterday’s low under 1.07 to take out 1.09 on the topside, taking it mildly positive for the week by +0.18%.

British pound rises with its data relatively less bad than in Europe

Survey data from purchasing managers painted a pretty bleak picture for the UK economy on Wednesday. The Markit Flash Composite PMI for March showed a reading of 37.1 -a collapse from the 53.0 reported in February and a new record low. The composite reading gives a combined reading for the services and manufacturing sectors. A reading above 50 signifies expansion while a reading below 50 shows a contraction.

The purchasing managers surveyed gave their answers before the government introduced more severe measures to prevent the spread of the coronavirus.

Euro under pressure as PMI data collapses, Spain death toll rises

While the numbers in the UK were bad, they were in many cases even worse in mainland Europe. The UK data was the best of a bad bunch, giving the pound a relative boost against the euro.

In France the equivalent March PMI data crumbled to 30.2, down from 52 in February, while in Germany it was 37.2, down from 50.7.

The spread of the coronavirus has taken hold quicker in mainland Europe so the readings are worse but British scientists seem to think this is only a lag, and the UK could soon find itself in equally difficult circumstances.

A spike in the COVID-19 death toll in Spain to 514 in 24 hours added to the anxiety in FX markets. is a news site only and not a currency trading platform. 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.