The British pound is flat against the euro on Wednesday.

  • US weighs $3.1 billion in new EU tariffs
  • Bank of America calls GBP an emerging market currency
  • German IFO business expectations beats estimates
  • Pound-euro exchange rate is barely changed at +0.05% this week

GBP/EUR was lower by 9 pips (-0.10%) to 1.1060 as of 3pm GMT.

Pound versus Euro was little changed, using yesterday’s close as midpoint for range bound trading. Yesterday too was directionless with a +0.02% rise.

GBP: British pound an ‘EM currency’ says BofA

The pound was mostly moving in sync with subdued risk sentiment, with a note from Bank of America contrasting it with an EM currency garnering some attention.

A notice published by the USTR (Office of the United States Trade Representative) – the agency responsible for developing and recommending US trade policy said the US could impose $3.1 Billion in new tariffs on the EU. The idea of an EU-US trade war has been off the table for a while but would be a significant risk to the euro. If the above were to happen, there is a good chance of a tit-for-tat response from the EU.

EUR: German business sentiment improves in June

A vast improvement in German business optimism in June is in keeping with the tone across financial markets, though had no lasting impact on the euro.

German IFO data on Wednesday showed ‘expectations’ – a guide to business’s outlook on the future rose to 91.4 over the 87.0 expected and up from the 80.1 in May. The reputation of German industry has been tarnished in the past week by the fall from grace of Wirecard on allegations of a multi-billion euro fraud.

The euro was little moved after comments from top ECB policymaker and chief economist Philip Lane. One takeaway was that Lane prefers asset purchases as a tool to tackle the current crisis over negative interest rates. Lane’s view that “the scale of the initial rebound may not be a guide for the recovery” seems to be a widespread concern for central bankers. 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.