- Pound (GBP) rebounds after losses last week
- BoE speakers in focus, in quiet week on economic calendar
- Euro (EUR) drops on Russia, Ukraine concerns
- No eurozone data is due
The Pound Euro (GBP/EUR) exchange rate is rising higher on Monday paring losses from the previous week. The pair fell -0.9% last week, settling at €1.893 at the low of the day and the week. At 05:45 UTC, GBP/EUR trades +0.75% at €1.1979.
The pound is rising against the Euro but falling against the US dollar on Monday as the Russia, Ukraine conflict remains centre of attention. There is little in the way of UK economic data to distract pound traders from the ongoing horrors in Ukraine.
Instead, this week sees Bank of England speakers hit the airwaves. Investors will be listening carefully for clues over whether the BoE will hike again in March.
The Euro rose against the pound last week, as investors eyes Russia, Ukraine developments and helped by encouraging data. On Friday figures revealed that the German economy performed better than feared in the final three months of last year. The economy contracted by -0.3%, less than the -0.7% forecast.
The annual reading was also upwardly revised to record growth of 2.7% across 2021, up from 2.7%.
Adding to the good news Eurozone economic sentiment was also better than forecast, coming in at 114, up from 112.7. Although the data was collected before Russia invaded Ukraine.
Today the Euro is falling lower after global sanctions on Russia were tightened. Russia has been removed from the fast payment system SWIFT, necessary for international financial operations. The problem is Europe is very dependent on Russian gas – making Europe vulnerable. Despite the ongoing attack and Putin putting nuclear stations on standby, there is still some hope of peace.
There is no high impacting Eurozone data due to be released today. European Central Bank President Christine Lagarde is due to speak later and could shed some light on whether the central bank will adopt a move dovish stance in light of the Russia, Ukraine conflict.