GBP/USD: Brexit

The British pound is modestly higher against the euro on Friday.

  • UK Treasury plans a new infrastructure Bank
  • Eurozone Composite July flash PMIs back into expansion
  • Pound snaps a 3-day losing streak
  • Exchange rate to finish the week flat

GBP/EUR was lower by 16 pips (+0.14%) to 1.1000 as of 3pm GMT. This week the pound-euro exchange rate is little changed at -0.02%.

The currency pair chopped around in a 40 pip range underneath 1.10 for most of the day. Yesterday it had fallen -0.16%.

GBP: New UK investment bank to be created

Sterling snapped a three-day losing streak and is on course to end the week flat against the euro.

Brexit concerns appeared to weigh on the pound but the bigger theme across the week was that of US dollar weakness. The soft dollar propelled EUR/USD above 1.16 and the GBP/USD above 1.27 to the highest levels since March, as well as gold over $1900 per oz and close to a fresh record high.

The economic data was well-received on both sides of the English Channel so it was the creation of a new UK infrastructure bank that gave the pound a small edge. The new bank would serve to replace the European Investment Bank after Brexit and help push forward Prime Minister Boris Johnson’s “Level Up” agenda. It would likely be formally announced in the August Statement by Chancellor Rishi Sunak according to the FT.

EUR: Eurozone economic activity picks up in July

The services and manufacturing sectors across the Euro-area improved at a much greater speed than anticipated in July. The service sector reading was the highest in over 2-years and the manufacturing the best in 18-months.  The Eurozone July flash services PMI rose to 55.1 when a smaller rise to 51.1 was expected. The flash manufacturing PMI reading came in at 51.1 versus the 501.1 expected.

Commenting on its own survey data Markit noted: “The data add to signs that the economy should see a strong rebound after the unprecedented collapse in the second quarter. However, while the survey’s output measures hint at an initial v-shaped recovery, other indicators such as backlogs of work and employment warn of downside risks to the outlook.” 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.