- UK currency strengthens on stable message from Home Secretary
- Theresa May calls for harmony and unity of UK and EU, with international leadership at the fore
- Euro maintains earlier positivity in exchange rates
- UK mortgage approvals stats out today
GBP/EUR Rallies to 1.29
Although influential economic data for both the UK and Eurozone was lacking on Tuesday, the Pound Sterling to Euro (GBP/EUR) exchange rate rallied to 1.2910 early in the European session.
A positive UK mortgage approvals figure could give the Pound more room to climb in the hours ahead.
Pound Sterling Appreciates Heavily on Recent ‘In’ Campaign Speech
The Pound has recorded a significantly better result against the Euro (GBP/EUR) today compared to earlier, although this still represents a low note in the exchange rate pairing.
The event that turned around the Pound’s fortunes was a speech from Home Secretary Theresa May, who in her debut for the ‘Remain’ group echoed sentiments that while the EU had its problems, it was far better to solve these as part of the entity, rather than outside of it.
The Pound Sterling (GBP) has dropped off against the Euro (EUR) and most of its other peers today, owing to persistent ‘Brexit’ fears.
The Euro, meanwhile, has been able to stave off investor pessimism despite less-than-ideal German data releases.
UK Economic News: Migration Meltdown Promised by Gove if ‘Brexit’ Fails
The Pound (GBP) has been softened today by UK Referendum news. While Friday saw Sterling appreciate heavily against its peers after a supportive speech for the ‘In’ campaign from US President Barack Obama, today has brought a rebuttal from ‘Out’ Co-Chair Michael Gove.
In an article in the Times, Gove stated that:
‘Politics should be about reform – making opportunity more equal rather than accepting a status quo that suits the establishment’.
The Justice Secretary went on to state that owing to existing limitations on UK border control, the nation would be powerless to stop an ‘unquantifiable’ number of migrants from EU-hopeful nations such as Montenegro, Albania and Turkey entering the UK and wearing out its services such as the NHS.
Negative Pound movements today have included -0.3% against the Euro (GBP/EUR) and the Romanian Leu (GBP/RON) and -0.5% against the Japanese Yen (GBP/JPY). The largest gains today have been made up of 0.9% against the Mexican Peso (GBP/MXN) and 1.5% against the Russian Ruble (GBP/RUB).
Euro (EUR) Steady Despite Latest German IFO Surveys Data
The Euro (EUR) has been buoyant overall today, having risen notably despite a negative outcome for the morning’s German IFO surveys for April.
Covering business climate, the current assessment and future expectations, the results all either failed to rise in line with forecasts or fell on previous printings.
Claus Vistesen of Pantheon Macroeconomics commented; ‘Overall, the IFO survey continues to tell a story of slowing economic momentum in the German economy. But we’re encouraged by the stabilisation in the expectations index, following the decline in Q1, which signals that the economy is not about to fall off a cliff.’
Single currency gains have included 0.2% against the Pound Sterling (EUR/GBP), 0.4% against the US Dollar (EUR/USD) and 1% against the South African Rand (EUR/ZAR).
Future GBP, EUR Forecast: UK CBI Stats due Shortly, ECB Policymakers Speak Later
The near-future will bring the day’s main UK economic releases, in the form of the Confederation of British Industry (CBI) trends for total orders, selling prices and business optimism in April. Unfortunately for the Pound (GBP), current forecasts are bleak in all three categories.
For the Euro (EUR), movement may occur this afternoon, as European Central Bank (ECB) officials Vitor Constancio and Benoit Coeure are both due to speak.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2819 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7802 today.