Pound V euro: GBP trades close to two-week high ahead of G20 summit



Pulsate V euro: GBP trades close to two-week high ahead of G20 summit

With no UK matter to consider today, demand for the pound remained tepid after a up to date trio of PMIs fell short. These showed slight slowdowns in UK originating, construction and services activity, largely attributed to all the recent political uncertainty.

On an way fairly quiet day, Prime Minister Theresa May is expected to meet with Donald Trump at the G20 Pinnacle.

The meeting of global leaders takes place over Friday and Saturday and could see May argue UK-US trade deals for the post-Brexit period.


The pound wearied Thursday morning close to a two-week high of €1.141 against the euro

Uncountable concretely, May is expected to discuss the contentious issue of climate change with the US head, specifically his plans to withdraw from the Paris climate change settlement.

Given that May seemingly had a positive reception from Trump when she visited the Bloodless House in January, it remains possible that the two national leaders longing have a productive discussion during the summit.

In Eurozone news, the euro has been in general unaffected by the latest domestic data. German construction fell marginally in June, but German mill orders and Eurozone-wide retail activity both rose. 

Theresa MayGETTY

May could argue UK-US trade deals for the post-Brexit period with Mr Trump

This Nautical port the EUR/GBP exchange rate trading in the region of £0.878.

We also have a speech from European Pre-eminent Bank (ECB) official Peter Praet to contend with, followed by ECB appointment minutes.

Speaking earlier this week Praet struck a watchful tone, stressing the need to be patient when it comes to changing solvent stimulus. If this outlook is repeated, the euro may dip.

The ECB meeting minutes could be high-impact, with the euro potentially being urged lower by any pessimistic outlooks from policymakers.

GBP/EUR movement could occur on Friday following the release of the UK’s pursuit balance report and a spread of production figures for May.

The trade balance count could prove the most impactful; this previously posted a shortfall of -£2.05bn in April. 

If May’s result shows a narrowing in the deficit the pound could get ahead.

Elsewhere, forecasts have been positive for construction, industrial and inventing output figures. 

If these show growth across the board then the crush may appreciate further against the euro before the weekend.

Leave a Reply

Your email address will not be published. Required fields are marked *