GBP/EUR: Pound Heads Higher As EU To Mull Over Brexit Extension
  • Pound (GBP) remains resilient as consumer sentiment jumps
  • 21st June still on track to ease restrictions
  • Euro (EUR) digested mixed data
  • Eurozone GDP & ZEW German Sentiment data due

The Pound Euro (GBP/EUR) exchange rate is edging lower on Tuesday for  a second straight session. The pair settled on Monday -0.09% lower at €1.1631, after moving as high as €1.1658 earlier in the session. At 05:45 UTC, GBP/EUR trades -0.07% at €1.1623.

The Pound was supported by upbeat UK consumer sentiment and optimism surrounding the reopening of the UK economy.

According to YouGov data, British consumer confidence rose in May to its highest level since April 2016, boosted by rising house prices and greater job security. The data adds to evidence of a rapid recovery in the British economy in the second quarter as shops, restaurants and pubs reopened their doors.

Separately data revealed that UK house prices rose to a fresh record high in May. The average property price rose by £3000 or 1.3% in May. Annually house prices rose 9.5%.

Covid cases rose by a further 5638 over the pass whilst deaths remained low with just one new death. The number of people with their first vaccine does sits at over 40 million. A UK spokesperson said that there is nothing in the UK data which would so far prevent lockdown easing restrictions being lifted on June 21st.

There is no high impacting UK data due to be released.

The Euro digested mixed data at the start of the week. On the one hand, German factory data unexpectedly declined in April, falling by -0.2% month on month. Analyst had expected factory orders to rise by 1%, after 3% gains in March.

However, Eurozone investor sentiment data was much more encouraging. Investors’ morale in the bloc reached its highest level since February 2018 in June. This marked the fourth straight month that investor sentiment improved as the economy continues to recover from the pandemic.

Today there is plenty of data for investors to focus on including Eurozone GDP, the third reading. German ZEW investor sentiment data will also be in focus and is expected to show an improvement as the economy continues to reopen after the covid lockdown.