The muted pairing comes despite data just being released that revealed German consumer confidence had slipped to a lower-than-forecast 10.1. This hit confidence in the euro as it was the lowest reading since April 2017. Meanwhile, Brexit pessimism continued to batter Sterling as Tory leadership candidate Jeremy Hunt warned against a no-deal “suicide”. Mr Hunt has said that the Conservative Party would face destruction if it attempts to push through a no-deal Brexit.
He also noted that the party would be “annihilated” and “face extinction” if there was a general election before the UK leaves the EU and that such an action would lead to a Labour victory.
However, fellow Tory Esther McVey tweeted in response “Political suicide actually lies in not having a clean break from the EU and not leaving on the 31st October.”
Meanwhile, the results of the European parliamentary elections left the pairing adrift as provisional election results revealed that eurosceptic opponents saw strong gains across the continent.
In Italy, Matteo Salvini’s League won 34.33 per cent of the votes, gaining 23 seats.
Masafumi Yamamoto, Chief Currency Strategist at Mizuho Securities said: “There is a polarization of the European Parliament which is kind of a representation of the overall European political situation. That will be broadly negative for the euro.”
Meanwhile, the single currency was left dented after comments by two officials from the bloc stating that the European Union is likely to start disciplinary actions against Italy on 5 June.
This comes as the country’s increasing debt and structural deficit levels become more problematic, breaking EU rules.
Looking ahead to the start of Wednesday’s session, the euro could slide following the release of the French GDP figures for Q1.
If the data reveals that the French economy did not expand by as much as predicted in the first three months of 2019, it could weigh on the single currency.
However, the euro could rise following the release of the German unemployment rate.
If Germany’s unemployment rate slips further than forecast in May, it could provide a small upswing of support for the single currency.