GBP/EUR: Pound Higher vs. Euro As German Inflation Disappoints
  • German IFO Sentiment data to provide catalyst in otherwise quiet session
  • Euro (EUR) extends gains for 3rd day
  • US Dollar (USD) jittery on strong data but rising covid-19 numbers
  • As Europe opens Euro US Dollar exchange rate (EUR/USD) holds over $1.13

The Euro is pushing cautiously higher for a third straight session, although the rally is showing signs of running out of steam. The Euro US Dollar exchange rate settled on Tuesday +0.4% at US$1.1308.

At 07:15 UTC, EUR/USD is trading +0.1% at US$1.1310 on jittery optimism and as investors look ahead to the release of German business sentiment data.

Germany will release its IFO business climate data for June and optimism is expected o recover further. Analysts are expecting a move higher on the index to 85, up from 79.5 in May.  Assessment of the current climate is also expected to improve. Better than expected numbers could see the Euro advance further.

The data comes hot on the heels of PMI data yesterday, which showed that business activity in the eurozone continued to pick up as lockdown measures ease. France was a notable performer, with activity in both its service sector and manufacturing sector expanding.

Concerns over a flare up of coronavirus cases in Germany could keep a cap on risk sentiment and Euro gains. German authorities in the state of North Rhine-Westphalia have re-imposed lockdown restrictions after a spike in coronavirus cases. More than 500,000 people are affected. Developments will be closely watched.

The US Dollar is trading flat versus its major peers as investors weigh up encouraging data with concerns over rising coronavirus cases in several states.

The US has reported more than 25,000 new coronavirus cases for a fifth straight day. Increases in Arizona, California, Florida and Texas are the most concerning and investors are cautious that further spreading of the virus could slow the US economic recovery.

Data on Tuesday showed that the US economy continued improve following April’s nadir. PMI figures showed business activity contracting by less and home sales surged 16.6%, following a -5.2% decline in April.

With no high impacting US economic data due for release today sentiment will drive the US Dollar as it awaits its next catalyst. Jobless claims and durable goods orders will be in focus on Thursday. 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.