GBP/EUR Exchange Rate Increases as Eurozone ‘Shifted Down a Gear’
The Pound Euro (GBP/EUR) exchange rate is up just above 0.4% today and is currently trading in the region of €1.1242.
The Euro (EUR) fell against the Pound (GBP) after the release of the Eurozone’s industrial production figures for November showed a worse-than-expected decrease of -1.7%, – its sharpest fall in almost three years.
Andrew Kenningham, an economist at Capital Economics, stated: ‘[The] Eurozone has clearly shifted down a gear,’ – echoing the concerns of many Euro traders this morning.
The Euro has also failed to benefit from China’s weakening economy today, with investors fleeing the Euro to safe-haven currencies.
Both Euro and Pound investors, however, remain apprehensive about the UK’s parliamentary vote on Prime Minister Theresa May’s Brexit vote tomorrow.
Pound Euro Exchange Rate Rises despite Resignation of Tory Whip over Brexit
The Pound failed to make any gains on the Euro today, with Theresa May’s speech failing to buoy confidence in either currency as she warned of ‘paralysis in Parliament’ should her Brexit deal be voted down tomorrow.
May’s speech was followed by the resignation of Gareth Johnson, a Tory whip and MP for Dartford, in order to vote against her Brexit deal. Johnson commented:
‘The ‘back stop’, contained in [May’s Brexit] agreement, gives our country no clear, unilateral path out of the European Union and ensures we will be fettered in our ability to negotiate trade deals with other nations in the future.’
EUR/GBP Exchange Rate Sinks as ‘Yellow Vests’ Protests Continue to Hinder Eurozone’s Third-Largest Economy
The Euro failed to gain on the Pound today despite French President Emanuel Macron publishing an open letter yesterday, initiating a ‘great national debate’ in a bid to quell tensions amongst the on-going anti-government ‘yellow vests’ protests.
These protests are dampening confidence in the Eurozone’s third-largest economy, and Macron’s attempt to address the ongoing division between the French government and protestors has left the single currency weakened against the Pound.
GBP/EUR Outlook: Tuesday’s Brexit Vote in Spotlight
Sterling investors will be paying close attention to tomorrow’s Parliamentary vote on May’s Brexit deal, with any signs of a no-deal potentially seeing the Pound plummet against the Euro.
EUR investors will be looking ahead to tomorrow’s publication of the French Consumer Price Index for December, with any signs of an increase potentially bolstering the single currency.
Tomorrow, however, will also see the European Central Bank President, Mario Draghi, deliver a speech, with EUR traders paying close attention to any bullish comments about the Eurozone.
Euro investors will be looking ahead to Wednesday when we will see the release of Germany’s yearly harmonized Index of Consumer Prices for December, with any signs of an increase potentially providing the single currency with support.
GBP investors will also be looking ahead to Wednesday, with Mark Carney, the Governor of Bank of England, due to make a speech, and with any dovish comments on the back of Tuesday’s Brexit vote, this could see the GBP/EUR exchange rate slip.