The Euro to Pound exchange rate pushed higher this morning as economic data from the Eurozone helped to bolster the single currency.
At the time of writing the pair are currently trading at around 0.8621.
Euro (EUR) Supported by Eurozone Economic Optimism
The Euro was supported this morning from fresh data coming out of both Germany and the Eurozone.
The GfK Consumer Climate Indicator in Germany increased to -12.9 for March of 2021, beating consensus of -14.3.
Rolf Bürkl, consumer expert at GfK commented on the data, saying:
‘Consumers are recovering to some extent from the shock they suffered after the tough lockdown in mid-December. The recent dip in infection rates and the launch of the vaccination program are fuelling hopes of a speedy easing of measures.’
‘Consumer sentiment in Germany will only recover sustainably when the strict lockdown ends and shops, hotels and restaurants reopen.’
Furthermore, Eurozone economic sentiment rose more than was expected in February, economic sentiment is at its highest level since March last year.
Pound (GBP) Loses Traction as Lockdown Easing Optimism Dies Down
The Pound found itself losing traction this morning as lockdown easing excitement died down, and the UK awaits to see if the Government’s roadmap will truly work.
Data released from the Office of National Statistics (ONS) this morning shows that 20 percent of the UK’s workforce, 6.5 million people, were on furlough at the beginning of February.
The arts, entertainment and food services had more than half of its workforce on furlough, showing that although the roadmap out of lockdown has been set out, the UK has a long way before normality returns.
Also from the UK, this morning the announcement was made that GCSE’s and A-Level exams will once again be scrapped this year.
Schools Minister, Nick Gibb spoke to UK television this morning, commenting on the decision he said:
‘We can’t have exams this year because of the pandemic and because of the disruption that many students have faced up and down the country.’
‘It wouldn’t be fair to hold exams this year and we trust the professionals – teachers are the people who know their students best and we do trust their professionalism.’
Euro to Pound Outlook: BoE Haldane Speech in Focus
In lieu of any notable Eurozone data for the end of this week, instead Euro traders will look to the beginning of next week for final PMI manufacturing data coming in from Germany and the Eurozone.
With both Germany and the Eurozone forecast to show a growth in manufacturing, the Euro could see further support from the data.
Euro investors will also be keeping an eye on the EU leader’s summit this afternoon, with the failures of the EU vaccination rollout likely to be a main talking point.
Pound investors will tomorrow be focused on Bank of England (BoE) Haldane’s speech, with any hawkish commentary surrounding UK inflation and the economy adding support to Sterling.