The British pound is higher against the euro on Tuesday.
The pound continues to make headway against most major currencies, continuing a near two-week recovery from multi-year lows.
Words of warning from about the considerable hit French and German businesses will take from lockdown measures hurt demand for euros.
Pound versus Euro was higher by 63 pips (+0.56%) to 1.1298 with a daily range of 1.1151 to 1.1346 as of 5pm GMT.
After falling below 1.12 in early trading GBP/EUR rallied over 100 pips to above 1.13, taking the weekly tally of gains to 1.01%.
UK growth statistics, in line with expectations, had little influence on GBP
Slightly less dismal than expected economic data helped lift the pound, alongside news that Price Charles was ending a period of self-isolation after 7-days after contracting COVID-19.
Growth statistics for the United Kingdom that came in line with expectations and had little influence on the pound, only to demonstrate that the UK economy had a standing start going into this crisis with 0% growth. The final reading for UK fourth quarter GDP was 0.0% q/q, in line with preliminary estimates.
Euro
The extent of the hit the Eurozone is likely, take from lockdown measures taken is starting to become a little clearer. A standout sign of the desperate position many businesses are finding themselves in, was French finance minister Bruno Le Maire saying that 21,00 companies have sought €3.8 billion in state-guaranteed loans since the crisis started.
Germany’s Ifo predicted that if Bavarian firms close for more than two months is could cost Bavaria €49-94 billion. The RKI reported a rise of 4,615 new confirmed cases (+8%) in Germany today.
In Spain, hope for a turnaround was knocked by 849 new coronavirus deaths, an 11% increase which ends the pattern of single digit growth rate over the past two days.
The lockdown measures are understood by governments to be both necessary but also economically and socially devastating and are keen to stop them as soon as possible. The Italian economic development minister said the country needs to prepare for end of lockdown but simultaneously it was reported by La Stampa that Italy may extend the lockdown until May 4th.
