The Pound Euro (GBP/EUR) exchange rate has firmed this morning following steady movement yesterday as coronavirus cases creep up across the UK.
The GBP/EUR pairing are trading around the 1.1574 level as the latest German GfK consumer confidence fell below forecasts.
Pound (GBP) Steady as Coronavirus Cases Edge Higher
The Pound has firmed today as an absence of notable data has left investors to digest former government aide Dominic Cummings’ testimony surrounding the UK’s handling of the coronavirus pandemic.
Mr Cummings made multiple claims that the government was underprepared for the pandemic and blasted Health Secretary Matt Hancock for his failures.
It comes as coronavirus cases in the UK have begun to creep up following the easing of lockdown restrictions last week.
Daily coronavirus cases reached their highest level since the middle of April at 3,180 as scientists remain concerned over the planned 21st June lockdown easing.
Imperial College’s Professor Neil Ferguson spoke to UK radio this morning regarding whether further lockdown easing should go ahead:
‘Step 4 [of the roadmap] is rather in the balance. The data collected in the next two to three weeks will be critical.’
‘The key issue as to whether we can go forward is: will the surge caused by the Indian variant – and we do think there will be a surge – be more than has been already planned in to the relaxation measures?’
Euro (EUR) Stumbles on Worse-Than-Expected German Consumer Confidence
The Euro has stumbled against the Pound this morning as the latest German GfK consumer confidence indicator for June fell below forecasts.
Though rising to -7 from -8.6 in May, the indicator missed market expectation of -5.2.
Rolf Bürkl, GfK consumer expert commented on the consumer confidence indicator from the Eurozone’s largest economy:
‘We are leaving the third wave behind us more and more, the incidences have been falling significantly for several weeks. We are also making great strides in vaccination.’
‘As a result, openings and a departure from strict lockdown are possible. At the moment this is primarily fueling economic optimism and creating a mood of optimism.’
Pound Euro Exchange Rate Outlook: Eurozone Consumer Confidence in Focus
A lack of notable economic data from the UK will see Sterling investors keep an eye on any further coronavirus developments heading into the weekend.
Any evidence that a surge in coronavirus cases could derail the UK’s lockdown easing on the 21st June would see the Pound weaken.
For Euro traders, tomorrow will see the release of the final Eurozone consumer confidence reading for May.
Although expected to remain in contraction at -5.1 it will be the highest reading since October 2018 as the bloc’s economy begins to reopen.
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