GBP/EUR: Brexit Hopes Keep Pound Elevated Above Euro

The pound euro (GBP/EUR) exchange rate is rising adding to last week’s gains.

The euro is under pressure after cooler than expected German inflation. German CPI remained unchanged at 2.2% YoY in March. Expectations had been for a rise to 2.3%.

Eurozone consumer confidence improved to -14.7 up from -14.9. However economic sentiment fell.

The pound is rising on optimism over the improving UK economic outlook. PMI data last week saw business activity expand at the fastest pace in 11 months.

The BoE is expected to cut rates in August as inflation is expected to towards 2% in April.