The pound euro exchange rate is down today and is trading around €1.156 at the time of writing. The pairing fell as Downing Street comes under increasing pressure to sever talks with the Labour Party. Fears are mounting in the Conservative party that Labour is altogether unwilling to secure a deal before the upcoming European elections. Jeremy Hunt, the Foreign Secretary, warned yesterday that partaking in the elections would be “highly, extremely, very, very challenging” for Prime Minister Theresa May – with her leadership potentially being threatened as a result.
Meanwhile, the pound failed to rise against the euro following the publication of the UK ILO unemployment rate figures for February, which held steady at 3.9 per cent – a 44-year low.
These were followed by the publication of the UK average earnings excluding bonus figures for February, which fell slightly to 3.4 per cent.
The euro, meanwhile, has gained against a weaker pound today as fears of a possible US-EU trade war eased, despite US President Donald Trump’s threat of hitting the bloc with heavy tariffs on aerospace products, along with French cheese and helicopters.
Yesterday, however, saw trade talks given the go-ahead between the two trading powers, and this has benefited market confidence in the euro.
Today will see the publication of the German ZEW Survey, which will provide an indication of the eurozone’s economic health in April ahead of Thursday’s PMIs.
Many traders in financial markets are away for the Easter holiday break, leaving the euro relatively stable.
The pound euro exchange rate will remain sensitive to Brexit developments this week, with cross-party talks still ongoing despite mounting resistance.
Any indications that a consensus might emerge between the two parties could benefit the pound to euro exchange rate.
Published at Tue, 16 Apr 2019 09:36:00 +0000