- Pound Euro gives back early gains
- Euro strengthens on strong manufacturing data
- UK manufacturing growing at its fastest rate since 1992
- Traders eyeing ECB’s President Lagarde speech
The Pound Euro (GBP/EUR) exchange rate has traded lower for the third consecutive day. The GBP to EUR pair was seen trading on Tuesday within a trading range of 1.1648 and 1.1566. At 07:23 UTC, GBP/EUR trades up +0.01% at 1.1590.
The Euro has a strong start this week with the single currency being propped up by a boost in the manufacturing activity in both the EU and particularly in Germany. Germany’s manufacturing sector grew by 64.4, while business activity in the EU’s manufacturing activity grew by 63.1.
Elsewhere, the upbeat UK manufacturing sector was boosted by an easing of lockdown restrictions. The Markit Manufacturing PMI in May rose to an all-time high of 65.6, up from 60.9 previous reading. However, the survey also revealed that many suppliers are struggling to keep up with demand.
Amid these factors, market participants booked profits prompting fresh selling interest in the British Pound.
Key Economic Data Ahead
The main key risk events in the day ahead are the retail sales data in Germany and ECB’s President Lagarde speech.
Based on the market consensus, retail sales in Germany are expected to slow down after previously it posted its biggest year-on-year increase since the start of the coronavirus pandemic.
Retail Sales are expected to slow down to 10.1% compared to 11% previous reading.