GBP/EUR: Brexit Hopes Keep Pound Elevated Above Euro

The pound euro (GBP/EUR) exchange rate rises for a third day, pushing above €1.17.

The euro is extending losses after the composite PMI fell to 49.9 in June from 52.8 in May and into contraction. The data raises concerns that the recession in the eurozone could be prolonged.

Looking ahead attention now turns eurozone retail sales, which are expected to rise 0.2% MoM in May after stalling at 0% in April.

The pound is capitalising on the weaker EUR, and shrugs off data showing that the construction sector slipped into contraction, with the PMI falling to 49.8.

The pound remains supported by hawkish BoE outlook for rate hikes.