GBP/EUR: Pound Steadies After Heavy Fall vs. Euro As May Vows To Stay
  • Pound (GBP) supported by impressive UK retail sales
  • Brexit deal with EU could see 60% of UK trade objectives achieved
  • Euro (EUR) holds steady even as Spain is removed from safe list of countries in peak travel period
  • German IFO business sentiment data expected to show signs of improvement

The Pound Euro exchange rate (GBP/EUR) is treading water at the start of the week after -0.2% losses from the previous week. The pair settled on Friday at €1.0976. At 05:15 UTC, GBP/EUR trades flat at €1.0975.

The Pound has been broadly supported by UK vaccine hopes and rebounding retail sales over the past week. On Friday data revealed that overall UK retail sales have returned to a similar level to before the coronavirus pandemic after two straight months of increases.  In June retail sales jumped 13.9% compared to the previous month, adding to 12% increase in May.

Brexit has dragged on demand for the Pound as recent talks have failed to see much progress. That said, UK Brexit Secretary David Frost has reportedly informed Tory MP’s that the UK will win around 60% of its objectives in an EU trade deal. The private assurance comes after both negotiators, David Frost and Michel Barnier poured cold water on a Brexit trade deal at the end of last week’s talks.

Concerns over a second wave of coronavirus infections in Spain is being shrugged off by the Euro on Monday. The number of daily cases has spiked in the Iberian peninsula. Spain is scrambling to stay ahead of the outbreak that prompted the UK to re-impose quarantine on travellers returning from the country. This deals a fresh blow to Spain which suffered severely in the first wave of coronavirus infections and whose economy is heavily dependent on tourism.

The UK, along with Norway and France have announced quarantine measures and travel warnings for those traveling to and from Spain and particularly the Catalunya region. This will almost certainly affect future bookings in the peak travel period for Spain whose tourism industry accounts for 10% of GDP.

Data wise German IFO business sentiment index is expected to continue showing signs of improvement which could support the Euro.

GBP Index Today - last 180 days


Currencylive.com is a news site only and not a currency trading platform.
Currencylive.com 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 currencylive.com do not represent our views.