Last week’s high: €1.1754
Last week’s low: €1.1578
Lack of Brexit Progress Weighs Heavily on GBP/EUR Exchange Rate
It was another volatile week for the GBP/EUR exchange rate as Parliament failed to break its Brexit deadlock.
As MPs continued to reject any of the proposed alternatives to Theresa May’s already rejected plan the risk of a no-deal Brexit appeared to increase.
Coupled with a surprise contraction in March’s UK services PMI, which slumped from 51.3 to 48.9, this left the Pound on a weaker footing against its rivals.
However, as Theresa May requested a fresh extension until the end of June this encouraged a sense of optimism and helped shore up the GBP/EUR exchange rate ahead of the weekend.
The Euro came under pressure, meanwhile, as German factory orders plunged -8.4% on the year in February.
With confidence in the outlook of the Eurozone’s powerhouse economy faltering the single currency struggled to find much traction.
Euro Outlook: ECB Caution Likely to Limit EUR Exchange Rate Strength
Demand for the Euro could diminish further this week if the European Central Bank (ECB) maintains a cautious outlook at its latest policy meeting.
Signs that the central bank is willing to keep monetary policy looser for longer would leave EUR exchange rates vulnerable to fresh selling pressure.
However, if policymakers appear less comfortable with interest rates remaining at their current record lows for the foreseeable future this could offer the Euro a boost.
Any fresh evidence of a slowdown in the Eurozone economy, though, may see the single currency falter.
The GBP/EUR exchange rate is likely to remain under pressure as long as market uncertainty over Brexit persists.
Until there are signs of progress towards a mutually agreeable Brexit deal the Pound may struggle to find any particular degree of support.
09:30 UK Industrial Production
09:30 UK Gross Domestic Product
12:45 European Central Bank Rate Decision
00:01 UK RICS House Price Balance
07:00 German Consumer Price Index
10:00 Eurozone Industrial Production
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Foreign Exchange Manager