- Pound (GBP) rebound after hitting monthly low last week
- UK services PMI in focus
- Euro (EUR) looks to services PMI data
- Euro sentiment data also in focus
The Pound Euro (GBP/EUR) exchange rate is starting the new week on the front foot. The pair posted mild gains of 0.2% across the previous week, settling on Friday at €1.1648 in the middle of the weekly traded range. At 05:45 UTC, GBP/EUR trades +0.09% at €1.1656.
The Pound may have posted small gains in the previous week. However, it is still starting this week close to its monthly low. The Pound gave up earlier gains last week after Bank of England Governor warned that the UK economy had not fully recovered and also reassured that the recent spike in inflation was temporary.
On Friday UK GDP data will shed more light on the health of the UK economic recovery. The UK GDP for the three months to May is expected to show a 1.9% increase, building on the 2.3% rise witnessed in April, when non-essential businesses were allowed to re-open following the second national lockdown.
Before that, today UK service sector PMI data will be in focus. The reading is expected to confirm June’s flash print to 61.7, down slightly from May but still a robust print.
Meanwhile covid cases in the UK remain elevated with over 24,000 new cases reported on Sunday. However, deaths remain low at 15. As a result, the final easing of lockdown restrictions is still expected on 19th July.
The Euro trades lower last week amid a stronger tone surrounding the US Dollar. The Euro trades inversely to the US Dollar.
There is plenty of data for Eurozone investors to sink their teeth into today. Services PMIs and composite PMI data, which is considered a good gauge for economic activity will be released for France, Germany and the block as a whole.
Eurozone Sentix confidence still also expected to show a rise n June as countries across the bloc reopen post covid. The Eurozone Sentix Indicator is expected to rise to 30 in June, up from 28.1.