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GBP/EUR: Euro A Touch Higher Ahead of GDP Data

9th June 2020

Pound (GBP) edges mildly lower after three sessions of gains
UK Japan trade talks set to begin today
Euro (EUR) advancing ahead of barrage of data including unemployment numbers and GDP
At 06:15 UTC, Pound to Euro (GBP/EUR) is trading -0.05% at €1.1260

The Pound is consolidating gains versus the Euro on Tuesday after three straight sessions of gains. The Pound Euro exchange rate reversed earlier losses on Monday to end the session in positive territory +0.3% at €1.1269.

At 06:15 UTC, GBP/EUR is trading -0.05% at €1.1260 as investors digest the latest lockdown easing moves announced by the government whilst looking ahead to a slew of data from the Eurozone.

Check real time GBP to EUR exchange rate

The number of daily coronavirus deaths has slipped right back to 55, a figure last seen before the covid-19 lockdown. The British economy continues to see lockdown measures eased. All shops will open as from 15^th June, whilst all restaurants and pubs will reopen on June 22^nd to serve customers outdoors. These are signs that the UK economy is reigniting, offering support for the Pound.

Whilst Brexit uncertainty continues to drag on the Pound, news that the UK will begin post Brexit trade negotiations with Japan today, is also buoying demand for sterling. Both sides are hopeful that they can enter into a free trade deal by the end of the year. This is a fairly ambitious aim given that it usually takes years to agree such a deal.

There is no high impacting data due to be release for the UK today, leaving the Pound to be driven by sentiment.

The Euro finished the previous session on the back foot after the Spanish central bank warned that the Spanish economy could contract by as much as 15% this year. This would make it one of the hardest hit economies by the coronavirus crisis. Spain had one of the strictest coronavirus lock downs. Furthermore, the Spanish economy is made up of predominantly a large number of small businesses, which are also more vulnerable.

Today data will remain very much in focus with German trade data, Eurozone unemployment and Eurozone GDP all under the spotlight. GDP is expected to confirm -3.8% quarter on quarter decline in the first three months of the year. In addition to the data, the Eurogroup ministers meeting also begins meaning that there could be more headlines to drive the currency as well.