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ExchangeRates.org.uk - Looking ahead for the Pound Euro (GBP/EUR) exchange rate, Tuesday will see the publication of some significant data from within the Eurozone.Germany is expected to release its latest ZEW economic sentiment index for June, which is expected to jump from 25.2 to 35.
Should the index print in line with forecasts, EUR exchange rates could continue to rise as the week progresses.
However, in the absence of any UK economic releases, the Pound may lack a clear catalyst as Tuesday’s European session begins.
With little domestic data to offer direction, Sterling is likely to remain vulnerable to shifts in global risk appetite and movements in its major currency peers.
DAILY RECAP:
The Pound Euro (GBP/EUR) exchange rate was dented despite Monday’s upbeat market mood.
At the time of writing, GBP/EUR traded at around €1.1726, down roughly 0.2% from Thursday’s opening rate.
The Euro (EUR) managed to gain ground against the majority of its peers on Monday, despite the day’s cheery market mood.
As a safe-haven currency, the single currency is usually undermined by a risk-on rally.
However, as Monday’s market mood hobbled to acutely safe-haven US Dollar (USD), and given the currencies negative correlation, EUR exchange rates benefited from a declining US Dollar, which ultimately lifted the Euro on Monday.
The Pound (GBP) came under pressure at the start of the week, retreating against the majority of its peers as an upbeat market sentiment favoured riskier assets.
At the same time, GBP struggled to gain traction against safe-haven rivals, despite its status as an increasingly risk-sensitive currency, as lingering concerns over the UK’s economic outlook weighed on Sterling.
Recent data pointing to a weakening labour market and a sharp contraction in GDP fuelled speculation that the Bank of England (BoE) could begin cutting interest rates in the near term, curbing appetite for the Pound.
This content was originally published on ExchangeRates.org.uk