The Pound Euro (GBP/EUR) exchange rate is mixed today after the latest ZEW economic sentiment rose more than first expected in Germany.
At the time of writing the GBP/EUR pairing are trading at around 1.1618 as Sterling continues to find support from England’s roadmap out of lockdown restrictions.
Pound (GBP) Steady on England Lockdown Easing
The Pound is mixed against the Euro today following the recent announcement from the Prime Minister Boris Johnson that the next stage of the roadmap out of lockdown will begin next week.
Speaking at a press conference yesterday evening at Downing Street Boris Johnson confirmed the third stage of lockdown easing could begin on the 17th May.
The third stage of lockdown easing will see indoor hospitality return and up to 30 people allowed to meet in an outdoor setting.
Speaking yesterday the Prime Minister spoke on the easing of restrictions, saying:
‘Today we’re taking a step toward that moment when we learn to live responsibly with Covid, when we cease eventually to rely on detailed government edicts and make our own decisions based on the best scientific advice about how best to protect our families and those around us.’
It comes as data published by Public Health England (PHE) yesterday has shown that a one jab of the Oxford-AstraZeneca coronavirus vaccine reduces the risk of death by coronavirus 80%.
Euro (EUR) Supported by German Economic Sentiment Index
The Euro has found support this morning following the release of the latest ZEW economic sentiment index from Germany for May which has seen the highest reading since 2000.
The figure suggests that economic sentiment has strengthened as the Eurozone’s largest economy recovers from the worst of the coronavirus pandemic.
ZEW president Professor Achim Wambach commented on the latest reading, saying:
‘The braking of the third wave of Covid-19 has made financial market experts even more optimistic. In the May survey, ZEW economic expectations reach their highest level in more than 20 years.’
‘The assessment of the economic situation is also improving noticeably. The experts expect a significant economic upturn in the next six months.’
Pound Euro Exchange Rate Outlook: UK Q1 GDP in Focus
For Pound investors, tomorrow will see the release of preliminary GDP data from the UK for Q1 which is forecast to show that GDP contracted 1.4% during the quarter due to the third national lockdown implemented at the start of the year.
However any indication that the UK economy shrank less-than-expected would see the GBP head higher.
Tomorrow will also see the release of the latest inflation rate data from Germany for April which is forecast to have risen to 2% year-on-year as the economy recovers from the coronavirus pandemic.
The rise in inflation could see the Euro head higher against many of its major rivals tomorrow.