admin The UK Pound to Euro exchange rate traded choppily and without clear direction as Monday’s session progressed with Sterling last seen trading at €1.11583, flat against last week’s close.
While the single currency jolted the session on a positive footing, gains were restricted following the latest Sentix investor confidence release which cleaned consensus estimates for recover and instead printed deeper into the doubtful territory at -5.8, the lowest level since 2014 with German sentiment sliding to a decade low.
From the Sentix release: “After the supposed de-escalation signals between the USA and China at the G20 summit in Japan, there was great hope that the downward trend in the economy could be stopped. This makes the vote of investors in response to this news all the more impressive…
“The longer no solution to the customs dispute is found, the more economic confidence suffers. For Germany, the overall index is even falling to a 10-year low.”
Meanwhile, on Brexit, the UK’s former Brexit chief, Philip Rycroft stated that everyone should be concerned about the possibility of a no-deal Brexit, further added the UL’s withdrawal from the EU was “an unprecedented risk”.
The pound to euro exchange rate was unchanged on Friday with the focus on the US labor market report. But, the spotlight returns to the UK this week with a number of important economic releases expected. These, combined with the ongoing political uncertainty in play, could spell change for the exchange rate. Experts have warned, however, that any GBP rallies could be short-lived.
The pound is currently trading at €1.115 against the euro.
Michael Brown, currency expert at Caxton FX expressed regarding the latest exchange rate figures.
“Sterling traded broadly unchanged against the euro on Friday as focus was firmly fixed on the better than expected US labor market report, hence resulting in little volatility on this side of the Atlantic,”
Sterling’s losses against the common currency have also been limited thanks to poor eurozone data and European Central Bank (ECB) rate cut expectations.
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