admin With the pairing currently trading around €1.160, the pound euro exchange rate fringed higher. In the third-quarter the Eurozone’s surprise growth of 0.2 percent failed to strengthen the European currency, with worsening economic sentiment and heightened geopolitical uncertainties dampening hopes of the Eurozone’s economic recovery.
In the analysis Senior Economist for the Eurozone Bert Colijn, said “The months ahead are likely to remain tricky for the Eurozone. The fourth quarter is off to a rough start and while recent news about global economic risks like the US-China trade war and Brexit have been promising, downside risks remain for the moment.”
The euro came under further downward pressure after German retail sales rose by a less-than-expected 0.1 percent, suggesting that private consumption is still losing steam in the Eurozone’s powerhouse economy.
Meanwhile, the pound rose despite today’s release of October’s GfK consumer confidence figure, which eased to a six-year low from -12 to -14.
However, UK markets have remained fixated on political developments ahead of the December 12 general election.
Client Strategy Director at GfK Joe Station stated “This deterioration in sentiment regarding our personal financial affairs is worrying as strong consumer spending has been the main driver of economic growth since the referendum in 2016.”
The pound has benefited from markets increasingly betting on a Conservative victory in the upcoming election, with the YouGov poll now showing the Tories ahead of Labour with a 15-point lead.
However, with Brexit delayed and a polarising election campaign not due to start in earnest until next week, the pound to euro exchange rate could hold onto today’s gains into the weekend.
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