GBP/EUR Politics in France and UK Driving Exchange Rate

The Pound Euro (GBP/EUR) exchange rate is extending gains for a sixth consecutive day, trading at a fresh 13 month high.

The Pound rallied following upbeat GDP data, which revealed that the UK economy rebounded more rapidly than expected in the final 3 months of the year.

Even so the UK economy contracted by -9.8% across 2020, its worst contraction in 300 years.

Today UK manufacturing PMI data will be in focus. Expectations are for the PMI to confirm 57.9.

The Euro could be supported by upbeat manufacturing PMI data, a sector which has been a bright spot across the Pandemic.

France has announced its third national lockdown hitting demand for the Euro.