gbp-euro-coins - GBP/EUR

The Pound is extending gains against the Euro on Wednesday after closing the previous session mildly higher.

The Pound versus Euro exchange rate settled on Tuesday +0.07% at €1.1484. The pair proved unable to hold onto highs of €1.1509 reached earlier in the session.

At 06:30 UTC, GBP/EUR is targeting €1.15 once more, trading +0.15% at €1.1495 as investors look ahead towards Eurozone consumer confidence figures and German inflation data.

Coronavirus Statistics & Brexit

The Pound is on the rise despite coronavirus statistics showing that Britain is on track to have one of the worst coronavirus death tolls in Europe. Government data shows that the curve continues to flatten However, according to the Office of National Statistics, fatalities across the UK were at least 24,000 on 19th April. Unlike the hospital death toll used by the government the ONS death toll includes deaths in the community, such as in care homes.

The figures highlight the scale of the challenge that Boris Johnson faces with easing lock down measures that have paralysed the UK economy. The PM warned on Monday that it was still too early dangerous to relax the lock down measures, amid fears of a second outbreak. Although health secretary Matt Hancock has ramped up testing significantly now.

Brexit is also back in the headlines as Boris Johnson confirmed that the turmoil caused by coronavirus will not cause the UK government to seek an extension to the Brexit transition period. Instead the expectation is that coronvirus will focus the EU negotiators on the importance of reaching a deal.

Eurozone Consumer Confidence and German Inflation Up Next

The Euro was resilient in the previous session amid an upbeat mood in the market. Today investors will turn their attention to the final reading of eurozone consumer confidence data. Analysts are expecting the consumer morale reading to be confirmed at -22.7 in April, the lowest level since 2013 and down from -11.6.

German inflation data will also be in focus. Analysts are expecting inflation to increase at just 0.6% year over year, well short of the 2% target, as tumbling oil prices and sharp decline in consumption weigh on consumer prices. Weak inflation could pressurise the euro ahead of Thursdays ECB meeting.