{"id":5536,"date":"2019-06-06T00:00:00","date_gmt":"2019-06-06T04:00:00","guid":{"rendered":"https:\/\/currencylive.com\/101006-gbp-eur-will-dovish-ecb-lower-euro\/"},"modified":"2019-06-06T00:00:00","modified_gmt":"2019-06-06T04:00:00","slug":"101006-gbp-eur-will-dovish-ecb-lower-euro","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/101006-gbp-eur-will-dovish-ecb-lower-euro\/","title":{"rendered":"GBP\/EUR: Will A More Dovish ECB Pull Euro Lower?"},"content":{"rendered":"<p>A better than expected performance in the UK service sector and political rumblings between Rome and Brussels helped boost the pound versus the euro on Wednesday. The pound euro exchange rate rallied to a peak to \u20ac1.1308.<\/p>\n<table class=\"table table-bordered\">\n<tr>\n<th><small> What do these figures mean? <\/small><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><small> 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. If the euro amount increases in this pairing, it\u2019s positive for the pound. Or, if you were looking at it the other way around:<em>1 EUR = 0.87271 GBP<\/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. <\/small><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The dominant UK service sector performed better than analysts had been expecting in May. The service sector pmi increased to 51, up from 50.4 in April and ahead of the 50.6 that analysts had been expecting. After data earlier in the week showed that UK manufacturing and construction sectors slipped into contraction, investors breathed a sigh of relief over the service sector figures. Particularly given that the service sector accounts for around 80% of economic activity in the UK.<\/p>\n<p>Yet despite service sector activity reaching a three-month high in May, the pace of expansion remains disappointing. Analysts expect the UK economy to remain close to stagnation in the second quarter amid Brexit and fears of a global economic downturn.<\/p>\n<p>There is no high impacting economic data due for release today. Instead investors will be looking ahead to Friday, UK Prime Minister Theresa May\u2019s last day as PM. Traders will prepare themselves for the Tory leadership battle which will continue until the end of July.<\/p>\n<h2><a href=\"#euro-fragile-amid-brewing-rome--brussels-tensions\" id=\"euro-fragile-amid-brewing-rome--brussels-tensions\"><\/a>Euro Fragile Amid Brewing Rome \u2014 Brussels Tensions<\/h2>\n<p>In a rare occurrence for the eurozone, data was actually supportive of the euro on Wednesday. However, investors barely responded to the good news, instead fixated by developments between Rome and Brussels.<\/p>\n<p>The European Commission took its first steps towards fining Italy over its growing debt pile on Wednesday. The two sides are gearing up for another battle over the Italy\u2019s budget. The EC has started disciplinary proceedings which could lead to a \u20ac3.5 billion fine.<\/p>\n<p>The EC also warned that weak economic growth in Italy means the GDP to debt ratio could reach 135% in 2020. The spiralling debt comes at a time when the Italian coalition government is close to collapse. The political instability comes at a time when the country needs stability to guide it out of this growing economic problem.<\/p>\n<p>Today investors will look towards the European Central Bank monetary policy announcement. With consumer spending, manufacturing and inflation dropping lower market participants are expecting President Draghi to remain cautious on the eurozone outlook. Signs that the ECB is adopting a more dovish stance could send the euro lower.<\/p>\n<p>Intes rate.<\/p>\n<table class=\"table table-bordered\">\n<tr>\n<th><small> Why do raised interest rates boost a currency\u2019s value? <\/small><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><small> Interest rates are key to understanding exchange rate movements. Those who have large sums of money to invest want the highest return on their investments. Higher interest rate environments tend to offer higher yields. So, if the interest rate or at least the interest rate expectation of a country is relatively higher compared to another, then it attracts more foreign capital investment. Large corporations and investors need local currency to invest. More local currency used then boosts the demand of that currency, pushing the value higher. <\/small><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\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>A better than expected performance in the UK service sector and political rumblings between Rome and Brussels helped boost the pound versus the euro on Wednesday. The pound euro exchange rate rallied to a peak to \u20ac1.1308. What do these figures mean? When measuring the value of a pair of currencies, one set equals 1 [&hellip;]<\/p>\n","protected":false},"author":163946598,"featured_media":5537,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1379],"tags":[1395,1394],"class_list":["post-5536","post","type-post","status-publish","format-standard","has-post-thumbnail","category-eur","category-gbp","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: Will A More Dovish ECB Pull Euro Lower? - 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\/101006-gbp-eur-will-dovish-ecb-lower-euro\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ileana Ionescu\" \/>\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\\\/101006-gbp-eur-will-dovish-ecb-lower-euro\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101006-gbp-eur-will-dovish-ecb-lower-euro\\\/\"},\"author\":{\"name\":\"Ileana Ionescu\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/3d5cb0a6a22d357fc0b9ad562f35e75b\"},\"headline\":\"GBP\\\/EUR: Will A More Dovish ECB Pull Euro Lower?\",\"datePublished\":\"2019-06-06T04:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101006-gbp-eur-will-dovish-ecb-lower-euro\\\/\"},\"wordCount\":741,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101006-gbp-eur-will-dovish-ecb-lower-euro\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100608-gbp-eur-will-dovish-ecb-lower-euro.jpg\",\"keywords\":[\"eur\",\"gbp\"],\"articleSection\":[\"EUR\",\"GBP\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2019\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101006-gbp-eur-will-dovish-ecb-lower-euro\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101006-gbp-eur-will-dovish-ecb-lower-euro\\\/\",\"name\":\"GBP\\\/EUR: Will A More Dovish ECB Pull Euro Lower? - Currency Live\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101006-gbp-eur-will-dovish-ecb-lower-euro\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101006-gbp-eur-will-dovish-ecb-lower-euro\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100608-gbp-eur-will-dovish-ecb-lower-euro.jpg\",\"datePublished\":\"2019-06-06T04:00:00+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/3d5cb0a6a22d357fc0b9ad562f35e75b\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101006-gbp-eur-will-dovish-ecb-lower-euro\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/currencylive.com\\\/news\\\/101006-gbp-eur-will-dovish-ecb-lower-euro\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101006-gbp-eur-will-dovish-ecb-lower-euro\\\/#primaryimage\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100608-gbp-eur-will-dovish-ecb-lower-euro.jpg\",\"contentUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100608-gbp-eur-will-dovish-ecb-lower-euro.jpg\",\"width\":1188,\"height\":669,\"caption\":\"GBP\\\/EUR: Will A More Dovish ECB Pull Euro Lower?\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101006-gbp-eur-will-dovish-ecb-lower-euro\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/currencylive.com\\\/news\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"GBP\\\/EUR: Will A More Dovish ECB Pull Euro Lower?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#website\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/\",\"name\":\"Currency Live\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/currencylive.com\\\/news\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/3d5cb0a6a22d357fc0b9ad562f35e75b\",\"name\":\"Ileana Ionescu\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/6ed3a7a555c25b7a0a1f9e6aeb6380726362fd35ff3348679ee5989680828ff2?s=96&d=blank&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/6ed3a7a555c25b7a0a1f9e6aeb6380726362fd35ff3348679ee5989680828ff2?s=96&d=blank&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/6ed3a7a555c25b7a0a1f9e6aeb6380726362fd35ff3348679ee5989680828ff2?s=96&d=blank&r=g\",\"caption\":\"Ileana Ionescu\"},\"description\":\"With a background in business journalism, Ileana works as a Junior Market Analyst for Currency Live and creates content that brings transparency to our audience. Originally from Bucharest, Ileana most commonly transfers EUR to RON and speaks Romanian, English, Italian, Spanish and German.\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/author\\\/ileana-ionescu\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"GBP\/EUR: Will A More Dovish ECB Pull Euro Lower? - Currency Live","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/currencylive.com\/news\/101006-gbp-eur-will-dovish-ecb-lower-euro\/","twitter_misc":{"Written by":"Ileana Ionescu","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/currencylive.com\/news\/101006-gbp-eur-will-dovish-ecb-lower-euro\/#article","isPartOf":{"@id":"https:\/\/currencylive.com\/news\/101006-gbp-eur-will-dovish-ecb-lower-euro\/"},"author":{"name":"Ileana Ionescu","@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/3d5cb0a6a22d357fc0b9ad562f35e75b"},"headline":"GBP\/EUR: Will A More Dovish ECB Pull Euro Lower?","datePublished":"2019-06-06T04:00:00+00:00","mainEntityOfPage":{"@id":"https:\/\/currencylive.com\/news\/101006-gbp-eur-will-dovish-ecb-lower-euro\/"},"wordCount":741,"image":{"@id":"https:\/\/currencylive.com\/news\/101006-gbp-eur-will-dovish-ecb-lower-euro\/#primaryimage"},"thumbnailUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100608-gbp-eur-will-dovish-ecb-lower-euro.jpg","keywords":["eur","gbp"],"articleSection":["EUR","GBP"],"inLanguage":"en-US","copyrightYear":"2019","copyrightHolder":{"@id":"https:\/\/currencylive.com\/news\/#organization"}},{"@type":"WebPage","@id":"https:\/\/currencylive.com\/news\/101006-gbp-eur-will-dovish-ecb-lower-euro\/","url":"https:\/\/currencylive.com\/news\/101006-gbp-eur-will-dovish-ecb-lower-euro\/","name":"GBP\/EUR: Will A More Dovish ECB Pull Euro Lower? - Currency Live","isPartOf":{"@id":"https:\/\/currencylive.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/currencylive.com\/news\/101006-gbp-eur-will-dovish-ecb-lower-euro\/#primaryimage"},"image":{"@id":"https:\/\/currencylive.com\/news\/101006-gbp-eur-will-dovish-ecb-lower-euro\/#primaryimage"},"thumbnailUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100608-gbp-eur-will-dovish-ecb-lower-euro.jpg","datePublished":"2019-06-06T04:00:00+00:00","author":{"@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/3d5cb0a6a22d357fc0b9ad562f35e75b"},"breadcrumb":{"@id":"https:\/\/currencylive.com\/news\/101006-gbp-eur-will-dovish-ecb-lower-euro\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/currencylive.com\/news\/101006-gbp-eur-will-dovish-ecb-lower-euro\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/currencylive.com\/news\/101006-gbp-eur-will-dovish-ecb-lower-euro\/#primaryimage","url":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100608-gbp-eur-will-dovish-ecb-lower-euro.jpg","contentUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100608-gbp-eur-will-dovish-ecb-lower-euro.jpg","width":1188,"height":669,"caption":"GBP\/EUR: Will A More Dovish ECB Pull Euro Lower?"},{"@type":"BreadcrumbList","@id":"https:\/\/currencylive.com\/news\/101006-gbp-eur-will-dovish-ecb-lower-euro\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/currencylive.com\/news\/"},{"@type":"ListItem","position":2,"name":"GBP\/EUR: Will A More Dovish ECB Pull Euro Lower?"}]},{"@type":"WebSite","@id":"https:\/\/currencylive.com\/news\/#website","url":"https:\/\/currencylive.com\/news\/","name":"Currency Live","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/currencylive.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/3d5cb0a6a22d357fc0b9ad562f35e75b","name":"Ileana Ionescu","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/6ed3a7a555c25b7a0a1f9e6aeb6380726362fd35ff3348679ee5989680828ff2?s=96&d=blank&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/6ed3a7a555c25b7a0a1f9e6aeb6380726362fd35ff3348679ee5989680828ff2?s=96&d=blank&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/6ed3a7a555c25b7a0a1f9e6aeb6380726362fd35ff3348679ee5989680828ff2?s=96&d=blank&r=g","caption":"Ileana Ionescu"},"description":"With a background in business journalism, Ileana works as a Junior Market Analyst for Currency Live and creates content that brings transparency to our audience. Originally from Bucharest, Ileana most commonly transfers EUR to RON and speaks Romanian, English, Italian, Spanish and German.","url":"https:\/\/currencylive.com\/news\/author\/ileana-ionescu\/"}]}},"jetpack_featured_media_url":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100608-gbp-eur-will-dovish-ecb-lower-euro.jpg","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts\/5536","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/users\/163946598"}],"replies":[{"embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/comments?post=5536"}],"version-history":[{"count":0,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts\/5536\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/media\/5537"}],"wp:attachment":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/media?parent=5536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/categories?post=5536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/tags?post=5536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}