Pound Euro (GBP/EUR) Exchange Rate Rises despite Higher-than-Forecast Eurozone GDP
The Pound Sterling Euro (GBP/EUR) exchange rate rose and the pairing is currently trading at an inter-bank rate of €1.1589.
The preliminary Eurozone GDP rose to an annual higher-than-forecast 1.2% during the first quarter of 2019.
Quarter-on-quarter, GDP rose jumped by a better than expected 0.4%, rebounding strongly following a slump in the second half of 2018.
However, the Pound continued to rise against the single currency.
Euro (EUR) Slips as Eurozone Unemployment Falls to Decade Low
Meanwhile, further data from Eurostat revealed that the bloc’s unemployment rate dipped to 7.7%.
This was the lowest level of unemployment in the Eurozone since September 2008.
Data revealed that unemployment fell by 1.172 million in the Eurozone.
Added to this, unemployment in the wider European Union dropped to 6.4% down from 6.5%.
This was the lowest level in 19 years, however this could do little to buoy the Euro.
Sterling (GBP) Rises as British Consumers Unfazed by Brexit Chaos
This morning, the GfK consumer confidence index revealed that British consumers were unfazed by March’s Brexit chaos.
Consumer confidence held steady in April at -13.
Consumer spending helped to soften the slowdown in the British economy due to record low unemployment, modest inflation and rising wages.
However, the survey suggested there could be problems ahead for the British retail sector, with the measure of willingness of consumers to make major purchases falling to its lowest level in five months.
Added to this, employers showed growing concern and data revealed they cut back on investment throughout 2018.
The Lloyds Bank business confidence survey revealed that while it rose for the second consecutive month, it was below its early 2019 level and long-term average.
Pound (GBP) Rises on Optimistic Cross-Party Talks
On Monday reports suggested that cross-party discussions on Brexit have taken a positive turn towards a possible compromise.
This likely buoyed Sterling, as Labour’s Sue Hayman suggested that both sides were taking a more positive tone in discussions.
Hayman suggested that talks had moved onto the ‘nuts and bolts’ of a potential compromise.
While it is understood no new offer from the government has been presented, participants emerged with a fresh sense of optimism which likely buoyed Sterling.
Pound Euro Outlook: Will the GBP/EUR Exchange Rate Fall on a Disappointing UK Manufacturing PMI?
The Euro (EUR) could rise against the Pound (GBP) this afternoon following the release of Germany’s Harmonized Index of Consumer Prices.
If April’s preliminary figure rises rebounds from the previous month’s slip, the single currency could be provided with an upswing in support.
Looking ahead to Wednesday, the Pound could fall following the release of the UK manufacturing PMI.
If April’s PMI reveals that growth in the manufacturing sector slows more than forecast, the Pound Euro (GBP/EUR) exchange rate could slide.