GBP/EUR: Pound Eases As Parliament Prepares To Vote On Brexit
  • Pound (GBP) recovers as risk sentiment improves
  • BoE moderate hawkish tone
  • Euro (EUR) eases after recovering yesterday
  • German GDP due

The Pound Euro (GBP/EUR) exchange rate is moving higher after looses in the previous session. The pair fell -0.019% on Thursday settling at €1.1947 after trading a 90 pip range from a low of €1.2040 to a high of €1.1933.  At 05:45 UTC, GBP/EUR trades +0.19% at €1.1969

The economic uncertainty which has stemmed from Russia invading Ukraine hit the Pound hard in the previous session. Investors started to question whether the BoE would be able to press head with an aggressive path to monetary policy tightening.

BoE policy makers have stressed that monetary policy tightening will be moderate with developments in eastern Europe unnerving investors. However, the fac hat sanctions have once again not included oil and gas is also helping the market mood recover.

Rather than targeting energy, the UK announced that Russian backs will be completely excluded from Britain’s financial system. The Russian elite are also targeted in the latest round of sanctions.

There is no high impacting UK data due to be released today. Investors will continue monitoring the latest Russia, Ukraine headlines.

The euro initially tumbled in the previous session on the news that Russia was invading Ukraine. Panic set in and the euro tumbled versus both the pound and the US dollar. The euro recovered off session lows following President Biden’s announcement that more sanctions were being imposed.

Today there is plenty of data for investors to focus on including French inflation, German GDP and Eurozone consumer confidence. The data is expected to show that the German economy contracted -0.7% in the final three months of the year.

The German Bundesbank warned earlier this week that they expect the German economy to contract again in the first quarter of this year as the latest wave of Omicron stopped people going to work. However, the German central bank predicted a rebound in economic growth in the Spring.