Yesterday’s high: €1.1361
Yesterday’s low: €1.1279
Strong Spanish Production Failed to Boost EUR
It was a relatively quiet day for the Euro on Wednesday, with fresh domestic data rather lacking.
As a result the single currency struggled to find any particular support against its rivals, especially as the general mood of markets turned more risk hungry.
While Spanish industrial production saw a solid uptick of 3.4% on the year in September, this failed to encourage confidence amongst investors.
Even so, this was not enough to boost the GBP/EUR exchange rate, which came under pressure thanks to political jitters.
Calls for Theresa May to sack both her International Trade Secretary and Foreign Secretary over separate failings in their conduct spooked the Pound.
With the minority Conservative government already rather fragile, this latest crisis looks set to further undermine May’s authority and ability to govern.
Reports that the major US banks are close to triggering their Brexit contingency plans and moving jobs out of London also weighed heavily on Sterling.
As the likelihood of Brexit talks proceeding to their second phase before the end of the year still looks rather slim, this left the GBP/EUR exchange rate on a marked slump.
Euro Outlook: ECB Economic Bulletin to Maintain Dovish Outlook
The mood towards the single currency is likely to remain rather muted today as markets await the latest European Central Bank (ECB) Economic Bulletin.
This is likely to echo the more dovish tone of recent commentary from President Mario Draghi, giving investors further cause to sell the Euro.
With a number of ECB speakers also making appearances over the course of the day, EUR exchange rates may struggle to return to a stronger footing.
However, if the political situation in the UK continues to dominate headlines, the Pound is unlikely to gain any ground against the Euro.
Unless May can regain an appearance of control over her cabinet the mood towards Sterling looks set to deteriorate, leaving the GBP/EUR exchange rate sliding.
09:00 European Central Bank Publishes Economic Bulletin
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