- Pound (GBP) is rising after yesterday’s losses
- FTSE 100 rises to a record high
- Euro (EUR) is falling with no EU-US trade deal still
- A deal is expected imminently
The Pound-Euro (GBP/EUR) exchange rate is rising after losses yesterday. The pair fell 0.08% in the previous session, settling on Wednesday at €1.1583. It traded between €1.1582 and €1.1624. At 19:30, GBP/EUR trades +0.24% at €1.1611.
The pound rose on Thursday, boosted by a buoyant mood, as the UK FTSE 100 stock index reached a record high. The UK’s main Stock Exchange index was boosted by miners, which have benefited from higher copper prices following Trump’s 50% tariff announcement.
The upbeat mood lifted the pound even as data showed that the UK suffered higher rates of Factory gate inflation than previously assumed. According to figures from the Office for National Statistics, producer price inflation, which measures the revision of input costs and selling prices of manufacturing and service companies, is expected to increase.
Looking ahead to tomorrow, attention is focused on UK GDP figures, which are expected to show that the economy grew 0.1% month-on-month in May after falling 0.3% in April. UK GDP was an impressive 0.7% in the first quarter. However, growth is expected to be significantly slower in the second quarter.
The euro is under pressure as Brussels continues to wait for a trade deal with the US. The EU Commission is discussing with US counterparts a range of measures to protect the EU’s car industry from steep US levies. These measures include tariff cuts and import quotas.
Earlier in the week, Donald Trump said that he would likely inform the EU within a few days what rates it could expect for exporting to the US. He also added that the EU has been behaving well in the trade talks.
Europe shipped almost 758,000 cars worth €38.9 billion to the US in 2024, more than four times as many in the other direction.
Sources suggest that the trade framework may be similar to one agreed with the UK in May.