GBP/USD: Pound Stronger vs Dollar Ahead Of Brexit Vote

The British pound is flat against the euro on Tuesday.

  • UK relaxes social distancing, pubs to reopen July 4th
  • UK & Eurozone PMIs top expectations
  • EU leaders to hold in-person meeting on recovery fund July 17-18
  • Pound-euro exchange rate is unchanged (0.00%) this week.

GBP/EUR was lower by 10 pips (+0.09%) to 1.1056 as of 3pm GMT.

The currency pair made an early run at 1.11 but fell short and tumbled to just above 1.10 and rebounded again. Yesterday was an equally directionless day of trading, finishing +0.11%.

GBP: UK relaxes social distancing measures

As widely anticipated Boris Johnson’s government announced the relaxation of social distancing rules and the reopening of large parts of the UK tourism and hospitality industry beginning July 4th. The news was largely already priced into the pound since July 4th had already been set as a tentative target by the government previously.

Johnson admitted that “there will be flare ups” but said “local measures will be needed to deal with such cases” – the implication being that there will not be another country-wide lockdown if there is a second wave.

EUR: New EU summit set for mid-July

Indeed, the German state of North Rhine-Westphalia imposed a lockdown for Gütersloh after a new virus outbreak in the area caused the country’s R-rate to spike. However, the rest of the country will continue to reopen for business.

Economic data impressed in both the UK and Eurozone on Tuesday – with PMIs from both economies exceeding expectations. The UK June flash services PMI rose to 47.0 versus the 40.0 expected and well up from the 29.0 in May. In the Eurozone the flash services PMI rose to 47.3 versus 41.5 expected and 30.5 prior.

Markit, the firm that compiles the PMI data summed it up nicely saying “Output and demand are still falling but no longer collapsing.”

An announcement today that EU leaders will meet again in person to discuss the EU Recovery fund keeps some hope alive that the fund will eventually be created. 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.