The pairing rose despite the UK’s GfK consumer confidence figures for April, which came in weaker-than-expected at -13, while the flash Spanish GDP figures for the first-quarter exceeded forecasts at 0.7 per cent. Joe Staton, the Client Strategy Director at GfK, commented on the UK data. He said: “Despite political carry-on in the Westminster bubble with the clock ticking on Britain’s eventual departure from the EU, consumers are holding firm and remain unshaken by the daily headlines of turmoil and intrigue, although we remain in negative territory.” Meanwhile in Brexit news, there are signs of a possible consensus emerging from cross-party talks this week, with a Labour Party official saying the “nuts and bolts” of a compromise had been agreed.
A spokesman for Theresa May said: “What we are focused on is the withdrawal agreement bill, because that is the legislation which is necessary in order to ratify our withdrawal from the EU.”
“That is part of the current Queen’s speech cycle and we need to finish that work.”
David Ramsden, the Deputy Governor for Markets and Banking at the Bank of England, will be delivering a speech today, with any bullish comments from him likely to see the pound rise.
Euro traders are awaiting the Eurozone’s Q1 flash GDP figures, which are expected to improve.
Annualised GDP, however, is expected to hold steady at 1.1 per cent.
The German GfK consumer confidence figures for May also remained unmoved at 10.4.
Today will also see the printing of the flash German Harmonised Index of Consumer Prices for April, which is expected to increase, potentially buoying the single currency.
The pound euro exchange rate will likely be driven by a mix of politics and data today with particular focus being put on the Eurozone growth figures.