The pound began creeping higher against the euro this morning
GBP/EUR is currently at everywhere €1.086, up 0.30 per cent this morning but still below yesterday’s apex of €1.088.
With a number of prominent central bankers set to speak later this afternoon, EUR investors are wanting that they will be able to learn more about the European Cardinal Bank’s (ECB) outlook on monetary policy when the bank’s President, Mario Draghi, occasions his speech later this evening.
European Central Bank president Mario Draghi will devise a speech later this evening
There have been a lot of describes recently suggesting that the ECB may be planning to start discussing the tapering of its quantitative easing events in the near future, which would be the first step towards the bank commanding in its accommodative monetary policy and opening the way for the ECB to start raising interest classifies.
However, officials last week moved to quell speculation nearly Draghi’s speech as they denied the ECB President would discuss the bank’s financial policy, which may leave investors a little dejected.
The pound struggled to cling to its gains against the euro yesterday
David Torment, market analyst at CMC Markets UK, said, “We were told by unnamed originators from the European Central Bank (ECB) that Mr Draghi will not be set down the groundwork for the tapering of the stimulus package.”
Meanwhile Sterling struggled to cling to its gains against the euro yesterday as investors began to go on with a closer look at the UK’s latest GDP data.
While the data did report a inattention rise in economic growth for the second quarter, it still remains virtually subdued at just 0.3 per cent, making Britain the slowest evolving G7 economy so far this year.
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On top of this, convoying data showed that business investment remained flat in the UK between April and June, with analysts attributing the slowdown in investment to troops’ reluctance to increase spending in the face of growing Brexit uncertainty.
Looking to the fore the GBP/EUR exchange rate may struggle to keep its head above water during the next few sessions as thin trading volumes over the bank event weekend and a lull in UK economic data until next Wednesday flies the pound exposed to further Brexit concerns.
Meanwhile, the euro may become aware of some strength at the start of next week’s session as economists prophecy that both Italy’s consumer and business sentiment will would rather risen in August following a string of upbeat data from the countryside in recent weeks.