Pound Euro Rate Trades in a Tight Range but for How Long?

GBP EUR Exchange Rate: Weekly Review July 16  

The Pound vs the Euro exchange rate has remained relatively range bound vs the Euro for the first time in many weeks during Monday’s trading session.

Prime Minister Boris Johnson has checked into hospital as a precaution owing to his symptoms caused by Coronavirus and Dominic Raab has stepped up to the plate in the meantime. Raab has confirmed that he is not replacing the Prime Minister and is simply stepping in where Boris is unable.

We have also seen some positive news released in that a number of countries globally especially in Europe have announced less deaths compared to previous days which shows a small glimmer of hope.

Austria has also suggested that it will be looking to reduce its lockdown terms in the next few weeks as long as social distancing continues to take place. Therefore, could we be seeing a ray of light that things could potentially change in other countries too?

Political News and the Impact on Pound Euro Rates

There have also been some political changes in the UK with the announcement that Keir Starmer has been announced as Labour’s new leader. During this time Boris has invited opposition leaders to come together to look at solving the issues caused by the pandemic in times of this national emergency.

In the meantime European leaders appear to be adopting different opinions as to how to finance the fiscal package. The Bank of England, US Federal Reserve and the Reserve Bank of Australia have all introduced Quantitative Easing measures and although the European Central Bank have announced EUR750bn worth of QE they have failed to agree how to finance this deal amongst themselves.

Taking a closer look at economic data and the UK will release GDP figures for February. Clearly this data release comes before the virus outbreak but it will make interesting reading to see how the economy was performing prior to the outbreak. Indeed, if the news is more positive than expected this could provide the Pound with some support vs the Euro. Therefore, if you’re in the process of buy or selling Euros then make sure you pay close attention to Thursday’s data announcements

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