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GBP/EUR Powers Ahead on Brexit Positivity and Weaker Eurozone Data

Last week’s high: €1.1355

Last week’s low:  €1.1209

Euro on a losing Streak as Pound Consolidates Gains

The Pound Euro exchange rate gained around 1.2% last week, hitting a three month high following some positive developments regarding Brexit combined with mixed economic data coming out of the Eurozone.

The first half of the week was flat, with Sterling suffering some losses on Tuesday and Wednesday, but towards the end of the week the GBP/EUR accelerated, rounding off the week sharply higher.

The main driver of the rebound in Sterling was to do with some optimism regarding Brexit caused by reports that Ireland would back Theresa May’s new plans for an all-UK customs union with the EU.

The rise came despite some stronger German factory orders data published on Friday morning which revealed an unexpected jump in activity.

EUR Outlook: Focus to Remain on Brexit this Week

Brexit and the rumoured Irish border deal is likely to remain the focus for investors this week, despite there being a couple of important ecostats on the calendar.

Wednesday will see the publication of the latest UK GDP figures for August, with economists currently split over whether we will see an increase or a decrease in growth. Either way, the GDP figure could pull GBP/EUR up or down.

In terms of the Euro, there is not much in the way of data being released this week, apart from the German trade balance figures tomorrow morning and Eurozone industrial production figures on Friday.

 

Key Events

8th October

23:01 UK BRC Like-for-Like Retail Sales (Sep)

9th October

06:00 EU Germany Trade Balance s.a. (Aug)

10th October

09:30 UK Trade Balance (Aug)

09:30 UK GDP (Aug)

09:30 UK Industrial Production (Aug)

10:00 UK BoE Haldane Speech

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To keep up to date with the Euro, visit the Euro blog in our Currency News section.

 

Arron Morris
Currency Trader
T: 01442 892 065

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