Pound Sterling Euro (GBP/EUR) Exchange Rate Rises as PM Boris Johnson Heads Back to Work
The Pound Sterling Euro (GBP/EUR) exchange rate edged higher on Monday morning, leaving the pairing trading at around €1.1459.
Sterling edged higher against the Euro today on optimism the UK may ease the month-long lockdown due to coronavirus.
Added to this, reports said Prime Minister Boris Johnson will return to work today, after recovering from Covid-19, boosting Sterling sentiment.
Meanwhile, risk appetite was offered a boost as countries began announcing plans to ease the current lockdown restrictions.
Italy is being closely monitored as the first European country to impose these measures around seven weeks ago is preparing to gradually lift them once again.
On Sunday night, Prime Minister, Giuseppe Conte announced the measures would be relaxed from the 4 May.
Added to this, Spain is expected to follow suit, and announce some relaxation of lockdown measures from 2 May.
Euro (EUR) Slips Ahead of ECB Meeting
Added to this, the Euro remained under pressure as traders look to this week’s European Central Bank (ECB) meeting.
The single currency slipped as the bloc’s bank is likely to extend its debt purchases to include junk bonds.
According to Piet Haines Christiansen, chief strategist, ECB and fixed income, at Danske Bank:
‘That’s really a huge step, because the ECB has never wanted to accept junk at all.’
This was caused investors to fret this decision could increase tensions and widen rifts between EU members.
Commenting on this, Nick Kounis, head of financial markets research at ABN AMRO noted:
‘The ECB has already done a lot but this will be a key meeting in trying to explain what its exact strategy is.’
Pound Euro Outlook: ECB Meeting in Focus
Looking ahead to Wednesday, the Euro (EUR) could suffer some losses against the Pound (GBP) following the release of the Eurozone’s business confidence.
If business confidence plummets in April due to the coronavirus, it will send EUR lower.
Meanwhile, traders will continue to focus on Thursday’s European Central Bank (ECB) monetary policy meeting.
While the bank is unlikely to change interest rates, if policymakers extend debt purchases and widen rifts between member states, the Pound Euro (GBP/EUR) exchange rate will edge higher.