{"id":3890,"date":"2017-08-10T00:00:00","date_gmt":"2017-08-10T04:00:00","guid":{"rendered":"https:\/\/currencylive.com\/10091-gbd-usd-hopes-smooth-brexit\/"},"modified":"2017-08-10T00:00:00","modified_gmt":"2017-08-10T04:00:00","slug":"10091-gbd-usd-hopes-smooth-brexit","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/10091-gbd-usd-hopes-smooth-brexit\/","title":{"rendered":"Pound Supported Against Euro by Hopes of a Smooth Brexit"},"content":{"rendered":"<p>The pound has managed to hold its ground versus the euro over the past few sessions. Since rebounding off \u20ac1.10 earlier in the week, the pound is now strengthening through \u20ac1.1077 as investors look towards fresh UK economic data for direction.<\/p>\n<p>This week, the second week of the month, is notoriously light on economic data for both the UK and the eurozone. Instead traders have been watching Brexit headlines and developments closely.<\/p>\n<p>The pound is already trading 0.14% higher versus the euro this morning, after reports are surfacing that a growing group of Theresa May\u2019s cabinet are starting to accept the need for a smooth, transitional Brexit. The complexity of Brexit and the need to avoid a cliff edge of change for businesses at the exit is driving this group, which includes the Prime Minister.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>Why is a smooth Brexit good for the pound? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>A smoother Brexit would be a scenario in which the economic consequences of leaving the European Union are minimised. This is favourable for the pound because the less the Brexit impact on the economy, the more likely that foreign investors will remain interested in the UK. Foreign investors need sterling to invest in the country and so the more GBP is purchased, the higher the demand and, thus, an increase in the currency\u2019s value. <\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n<p>Traders will now look ahead to the UK industrial and manufacturing production data, which is due later this morning. This is an important economic release because it serves to give an indication as to the strength of the British economy. UK manufacturing activity has been expanding lately, as demand for UK goods has increased on the back of the Brexit weakened pound. A weaker pound has made UK goods cheaper for buyers with other currencies, this means that exports have also picked up across the year. Should manufacturing come in higher than the 0.6% pencilled in by analysts, then the pound could continue to push higher against the euro, as it heads towards the final day of trading for the week.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>Why does strong economic data boost a country\u2019s currency? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Solid economic indicators point to a strong economy. Strong economies have strong currencies because institutions look to invest in countries where growth prospects are high. These institutions require local currency to invest in the country, thus increasing demand and pushing up the money\u2019s worth. So, when a country or region has good economic news, the value of the currency tends to rise. <\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n<h2><a href=\"#can-german-inflation-data-on-friday-boost-the-euro-\" name=\"can-german-inflation-data-on-friday-boost-the-euro-\"><\/a>Can German inflation data on Friday boost the euro?<\/h2>\n<p>Euro traders have had little to sink their teeth into this week. In the absence of any high impacting economic data, demand for the common currency has been rather muted. Once again, today there is nothing of note on the economic calendar, instead investors will look ahead to Friday.<\/p>\n<p>Friday sees the release of German inflation data in the form of the consumer price index. A strong inflation reading for Europe\u2019s powerhouse could offer some support to the euro. Optimism towards Germany slipped at the beginning of the week when trade figures showed an unexpected contraction in German exports. Any signs that German inflation is increasing could increase the odds of the European Central Bank tightening monetary policy. This could boost the euro.<\/p>\n<table class=\"table table-bordered\">\n<tbody>\n<tr>\n<td>\n<p><small><em><br \/>\nThis publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Inc., Currency Live or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. Consult our <a href=\"https:\/\/currencylive.com\/risk-warning\/\">risk warning<\/a> page for more details.<\/em><\/small><\/p>\n<p><small><em>This article was initially published on TransferWise.com from the same author. The content at Currency Live is the sole opinion of the authors and in no way reflects the views of TransferWise Inc.<\/em><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The pound has managed to hold its ground versus the euro over the past few sessions. Since rebounding off \u20ac1.10 earlier in the week, the pound is now strengthening through \u20ac1.1077 as investors look towards fresh UK economic data for direction. This week, the second week of the month, is notoriously light on economic data [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":3891,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1379,1381],"tags":[1386,1398],"class_list":{"0":"post-3890","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-gbp","8":"category-usd","9":"tag-brexit","10":"tag-usd"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Pound Supported Against Euro by Hopes of a Smooth Brexit - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/10091-gbd-usd-hopes-smooth-brexit\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Fiona Cincotta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/10091-gbd-usd-hopes-smooth-brexit\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/10091-gbd-usd-hopes-smooth-brexit\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"Pound Supported Against Euro by Hopes of a Smooth Brexit\",\"datePublished\":\"2017-08-10T04:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/10091-gbd-usd-hopes-smooth-brexit\\\/\"},\"wordCount\":709,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/10091-gbd-usd-hopes-smooth-brexit\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/10091-gbd-usd-hopes-smooth-brexit.png\",\"keywords\":[\"Brexit\",\"usd\"],\"articleSection\":[\"GBP\",\"USD\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2017\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/10091-gbd-usd-hopes-smooth-brexit\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/10091-gbd-usd-hopes-smooth-brexit\\\/\",\"name\":\"Pound Supported Against Euro by Hopes of a Smooth Brexit - 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