{"id":4865,"date":"2018-09-11T00:00:00","date_gmt":"2018-09-11T04:00:00","guid":{"rendered":"https:\/\/currencylive.com\/100637-gbp-eur-brexit-optimism-returns\/"},"modified":"2018-09-11T00:00:00","modified_gmt":"2018-09-11T04:00:00","slug":"100637-gbp-eur-brexit-optimism-returns","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/100637-gbp-eur-brexit-optimism-returns\/","title":{"rendered":"GBP\/EUR: Brexit Optimism Returns Lifting Pound vs. Euro"},"content":{"rendered":"<p>Strong UK economic growth and Brexit optimism sent the pound soaring versus the euro on Monday. The pound euro exchange rate jumped to \u20ac1.1240, its highest level in 5 weeks before edginglower.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>What do these figures mean?<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>\n<p> When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute. <\/p>\n<p> For example, it could be written: <em>1 GBP = 1.13990 EUR<\/em> <\/p>\n<p> <em>Here, \u00a31 is equivalent to approximately \u20ac1.14. This specifically measures the pound\u2019s worth against the euro. If the euro amount increases in this pairing, it\u2019s positive for the pound.<\/em> <\/p>\n<p> Or, if you were looking at it the other way around: <em>1 EUR = 0.87271 GBP<\/em> <\/p>\n<p> <em>In this example, \u20ac1 is equivalent to approximately \u00a30.87. This measures the euro\u2019s worth versus the British pound. If the sterling number gets larger, it\u2019s good news for the euro.<\/em> <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The pound started the previous session on the front foot after data showed that the UK economy was growing at a faster pace than what analysts had been expecting. The UK GDP for July hit 0.3%, up from 0.1% in June and ahead of the 0.2% that analysts had pencilled in. The boost to growth came from the summer heat wave encouraging consumers to hit the shops and the strong performance by England in the world cup. Construction output hitting a record high also helped lift UK economic growth. The strong numbers lifted the pound.<\/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>\n<p>Brexit optimism was the biggest driver of the pound in the previous session. EU Chief Negotiator Michel Barnier said that he saw a Brexit deal being achieved in the next 6 \u2014 8 weeks as a realistic goal. This news has come just in time for UK Prime Minister who has been under heavy political pressure from all sides of her party, but particularly the hard line Brexiteers.<\/p>\n<p>There are still obstacles ahead and such a deal would still need to make it through the British Parliament, but a deal is now in sight boosting optimism that a hard, no deal Brexit can be avoided.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>Why is a \u201csoft\u201d Brexit better for sterling than a \u201chard\u201d Brexit?<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>A soft Brexit implies anything less than UK\u2019s complete withdrawal from the EU. For example, it could mean the UK retains some form of membership to the European Union single market in exchange for some free movement of people, i.e. immigration. This is considered more positive than a \u201chard\u201d Brexit, which is a full severance from the EU. The reason \u201csoft\u201d is considered more pound-friendly is because the economic impact would be lower. If there is less negative impact on the economy, foreign investors will continue to invest in the UK. As investment requires local currency, this increased demand for the pound then boosts its value.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The pound will remain in focus today as investors look towards average earnings figures, which analysts expect to have moved higher.<\/p>\n<h2><a href=\"#will-zew-sentiment-data-lift-the-euro-today\" id=\"will-zew-sentiment-data-lift-the-euro-today\"><\/a>Will ZEW Sentiment Data Lift The Euro Today?<\/h2>\n<p>The euro was broadly in favour in the previous session amid a general improvement in market sentiment. The euro also received an unexpected boost from Michel Barnier\u2019s words.<\/p>\n<p>Investors will now turn their attention to data to be released today. The ZEW economic sentiment surveys will be closely watched. Analysts are expecting economic sentiment in Germany, the powerhouse of Europe to have ticked higher to -13.5, up from -13.7 in August. Whilst this is significantly above the low of \u2014 24 reached in July as trade tensions hit confidence, it is still a long way below the long term average of 23. A weak reading could pull the euro lower.<\/p>\n<hr \/>\n<p><small><\/p>\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>Strong UK economic growth and Brexit optimism sent the pound soaring versus the euro on Monday. The pound euro exchange rate jumped to \u20ac1.1240, its highest level in 5 weeks before edginglower. What do these figures mean? When measuring the value of a pair of currencies, one set equals 1 unit and the other shows [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":4866,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1379],"tags":[1386,1395,1394],"class_list":["post-4865","post","type-post","status-publish","format-standard","has-post-thumbnail","category-eur","category-gbp","tag-brexit","tag-eur","tag-gbp"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>GBP\/EUR: Brexit Optimism Returns Lifting Pound vs. Euro - 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\/100637-gbp-eur-brexit-optimism-returns\/\" \/>\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=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100637-gbp-eur-brexit-optimism-returns\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100637-gbp-eur-brexit-optimism-returns\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"GBP\\\/EUR: Brexit Optimism Returns Lifting Pound vs. Euro\",\"datePublished\":\"2018-09-11T04:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100637-gbp-eur-brexit-optimism-returns\\\/\"},\"wordCount\":836,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100637-gbp-eur-brexit-optimism-returns\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100637-gbp-eur-brexit-optimism-returns.jpg\",\"keywords\":[\"Brexit\",\"eur\",\"gbp\"],\"articleSection\":[\"EUR\",\"GBP\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2018\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100637-gbp-eur-brexit-optimism-returns\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100637-gbp-eur-brexit-optimism-returns\\\/\",\"name\":\"GBP\\\/EUR: Brexit Optimism Returns Lifting Pound vs. Euro - 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