If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.

GBP/EUR rallies to one-month high amid reopening optimism

currency-newsGBP/EUR rallies to one-month high amid reopening optimism
The pound rebounded sharply at the end of last week’s session, spurred higher by hopes England’s reopening will see the UK’s economic recovery accelerate over the summer.

Meanwhile, Sterling is holding in a narrow range so far this week, with GBP/EUR flat at €1.1703 and GBP/USD muted at $1.3891. GBP/CAD his rangebound at C$1.7317, while GBP/AUD and GBP/NZD are holding steady at AU$1.8595 and NZ$1.9912 respectively.

In the spotlight today will be Boris Johnson’s press conference in which he will offer more details on the 19 July reopening. Will the PM have succumbed to pressure from health experts for a more cautious approach to lifting restrictions?

What’s been happening?

The pound initially struggled to attract support on Friday, after the UK’s latest GDP release reported a smaller-than-expected expansion of growth in May.

However, GBP bulls were quick to shrug off the underwhelming data, with Sterling rebounding through the European trading session, on hopes that England’s impending reopening will help to turbocharge the UK’s economic recovery over the summer.

The euro, meanwhile, ticked lower on Friday, with the single currency relinquishing a portion of Thursday’s gains after the minutes from the European Central Bank’s (ECB) June policy meeting, reinforced the ECB’s current dovish bias.

At the same time, the US dollar closed last week’s session on the back foot, coming under broad-based pressure in spite of a rise in US Treasury yields.

What’s coming up?

Boris Johnson is expected to provide more details on the government’s plans to lift nearly all coronavirus restrictions in England on 19 July, later today.

However, amidst a startling rise in domestic coronavirus cases over the past week, the Prime Minister is under considerable pressure to adopt a more cautious approach, which could result in some volatility in the pound today.

In the absence of any notable Eurozone data releases, coronavirus developments in Europe may act as the main catalyst of movement in the euro today, with the single currency potentially facing some headwinds amidst rising concerns over the spread of the Delta variant across the continent.

Meanwhile, the focus for USD investors at the start of this week will be on the latest US consumer price index. Will a modest slowing of inflation last month exert some pressure on the US dollar?
Philip McHugh

Philip McHugh

Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure

Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)

Check our exchange rate

Thanks, we'll be in touch.

Check your inbox - one of our currency experts will be in touch to complete your quote.

If you want see our online exchange rates straight away, simply register online & log in.