- Pound (GBP) rises after Pan B restrictions dropped
- The party gate report to be released next week
- Euro (EUR) struggles owing to a soaring USD
- EUR looks to German GDP, Eurozone consumer confidence
The Pound Euro (GBP/EUR) exchange rate is pushing higher for a fourth straight session. The pair gained 0.3% in the previous session, settling at €1.2008 towards the high of the day. At 05:45 UTC, GBP/EUR trades +0.12% at €1.2024. The pair is due to gain 0.64% across the week.
The Pound pushed higher in the previous session despite the ongoing domestic and geopolitical risks. For now, it looks as if Prime Minister Boris Johnson will keep his job into next week as the Sue Gray report into the Downing Street parties looks like it will now be published next week.
Instead, the pound gained as the UK ended Plan B covid restrictions, which is centered around learning to live with a virus which appears to be here to stay. At the same time, data revealed hat spending on credit and debit cards increased slightly last week as more people went out shopping or to restaurants. This is an encouraging sign for the UK economy.
Today there is no high impacting UK data for investors to digest meaning that sentiment is likely to drive trading.
The Euro fell in the previous session on the back of a stronger US Dollar. The US Dollar rallied to a 19-month high after the Federal Reserve said that it planned to start hiking interest rates in March. The euro trades inversely to the US dollar.
German GFK consumer confidence only saw a slight improvement in the forward-looking survey. February consumer confidence came in at -6.7, up from -6.9 in January. Thr data revealed that high energy prices continue to weigh on confidence and spending. Consumer spending remains around 2% below pre-pandemic levels and judging by the weak consumer confidence this could take some time to recover.
Today attention will focus on German GDP data which is expected to show that growth slowed to 1.8% in the final quarter of the year, down from 2.5%. Eurozone consumer confidence data will also be in focus.