The GBP EUR exchange rate rallied this morning as investors remain optimistic that the upcoming Brexit bill will bring some clarity to the UK’s exit from the EU.
Uptick in Pound Euro (GBP EUR) as Markets Await Brexit Clarity
The Pound surged this morning as parliament looks set to approve the government’s Brexit bill allowing for MPs to amend the bill when it formally passes through the House of Commons next week.
Observers predict that the bill will face no major hurdles as it passes through parliament as much of the opposition on the Tory backbenches has been quelled by Theresa May’s promise to release a White Paper formally outlining how she plans to leave the EU.
Investors are hoping that once the bill is finally ratified by parliament with any amendments made that they will have a clearer picture of how the Brexit process is likely to play out, ending months of uncertainty.
Uptick in Manufacturing Unable to Boost Euro
The Euro has found itself dropping against the Pound this morning despite some notable Manufacturing growth across the bloc.
Most members reported a rise in activity in the first month of the year with stats from France showing a rise from 53.5 to 53.6. Germany saw a surge from 55.6 to 56.4 over the same period, helping to drive the overall Eurozone reading from 54.9 to 55.2 in January.
However, there are concerns that Greece continues to undermine the stability of the Eurozone as figures from Greek factories plummeted from 49.3 to 46.6.
GBP EUR Exchange Rate Forecast: BoE Meeting Ahead
The Bank of England will meet on Thursday for its latest policy meeting but it is unlikely to provide much upward momentum for the GBP EUR exchange rate. Despite a notable rise in inflation BoE Governor Mark Carney is expected to hold interest rates at a record low of 0.25% as he fears a significant drop in consumer spending in the months ahead.
Meanwhile, Euro traders will be hoping that European Central Bank President Mario Draghi will discuss the Bank’s plans for its stimulus programme after the Eurozone inflation rate shot up to 1.8% in January.
Current Interbank Exchange Rates
At the time of writing the GBP EUR exchange rate was trending around 1.157and the EUR GBP exchange rate was trending around 0.85.
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