- Pound (GBP) extends gains ahead of data deluge
- UK re-opens all shops and outside hospitality
- Euro (EUR) trades mixed after rebounding retail sales
- EZ & German ZEW sentiment data coming up
The Pound Euro (GBP/EUR) exchange rate is extending gains for a second second consecutive day. The pair settled across the previous week settling 0.1% high on Monday at €1.1534 after rising to a high of €1.1577 earlier in the session. At 05:15 UTC, GBP/EUR trades +0.15% at €1.1550.
The Pound pushed higher in the previous session as the UK economy took another step along the path to easing lockdown restrictions. All shops, gyms, hair dressers and outside serving bars and restaurants reopened, taking the UK a step closer to a fully functioning economy.
Today the focus will be firmly on the UK economic calendar with a slew of data due to be released including the monthly GDP reading.
After a better than expected 2.9% contraction in January, optimism has been on the rise that the first quarter contraction will be slightly less than the 4% expected by the Bank of England just at the start of the year. On a monthly basis GDP in February is expected to rise 0.6% despite the ongoing lockdown, as business adapted to the restrictions.
Industrial production and manufacturing production figures for February are expected to be more of a mixed bag. A sign that the UK economy performing better than expected could boost the Pound.
The Euro traded lower versus the Pound but advanced versus the US Dollar. Better than forecast Eurozone retail sakes underpinned the common currency.
Retail sales rose 3% month on month in February, rebounding firmly from an upwardly revised -5.2% decline in January. This was also above forecasts of 1%. The forecast beating sales come amid a big increase in non-food sales, which had tumbles 9.9% in January.
Looking ahead, the economic calendar from the Eurozone sees the release of German wholesale inflation and ZEW German sentiment data. The headline economic sentiment figure for the Eurozone’s largest economy is expected to show an improvement. However, the ZEW economic sentiment figure for the region is expected to slip in April.