GBP/EUR: Pound Shakey vs. Euro Ahead of Brexit Bill Debate
  • Pound (GBP) weighed down by Brexit concerns
  • Boris Johnson announced new lockdown easing measures
  • German retail sales expected -12% mom in April vs -5.6% in March
  • At 06:15 UTC, GBP/EUR -0.05% at €1.1117 >> Real time exchange rate

GBP is trading mildly lower against the Euro (EUR) in early trade on Friday, slipping for a third straight session. GBP/EUR exchange rate settled on Thursday -0.1% at €1.1121.

At 06:30 UTC, GBP/EUR is trading -0.05% at €1.1117. The pair is on track for a weekly loss in the region of -0.4%, the third consecutive week of losses.

Across the month of May the Pound has lost over 3% versus the common currency, dragged down by lingering Brexit concerns, on top of the coronavirus impact. Meanwhile, the Euro has benefited this month from a step closer towards financial integration in the region and a bigger than expected €750 billion stimulus programme from the European Commission.

With little in the way of UK economic data to grab Pound investors Brexit and sentiment are driving movement in sterling.

Boris Johnson outlining the phased reopening of the economy with the gradual easing of lockdown measures is offering support to the Pound. The Prime Minister Announced that as from Monday groups of 6 will be allowed to meet outside, whilst sticking to social distancing rules. Optimism surrounding the reopening of the British economy is lifting sterling.

On the other hand, Brexit is once again injecting volatility. Brexit Secretary David Frost reiterating that the UK will not be requesting an extension to the transition period dragged on the Pound. Meanwhile, comments from EU trade commissioner that the EU is willing to move in negotiations was supportive, although he insisted that the UK must be willing to do the same.

The Euro advanced in the previous session on an upbeat market mood and following slightly better than forecast German inflation data.

Looking ahead it is another busy day for eurozone data. Investors will be watching German retail sales closely for clues as to how hard the coronavirus impact was on Europe’s largest economy.

Analysts are expecting retail sales to drop -12% month in April, down from -5.6% decline in March. Eurozone inflation figures will also be of interest.


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