Pound to euro exchange rate: Sterling climbs BACK as Eurozone unemployment slides

The data did little to deliver any significant impact on the exchange rate. 

TorFX currency analyst Laura Parsons said: “The GBP/EUR exchange rate closed out Monday basically unchanged from the day’s opening levels, with the pairing hovering in the region of €1.116. 

“The euro was gently buffeted by a succession of domestic data but none of the news was impressive enough to inspire much movement.”

Fresh data to be released out of the Eurozone and the UK could have a much more powerful influence.

Ms Parsons said: “Today could prove more eventful however, with the UK set to publish its manufacturing PMI for July and the Eurozone due to release its second quarter growth data. 

“Sliding manufacturing output would be pound-negative, while an impressive level of growth in the currency bloc is liable to send the euro higher.”

The key event to watch for the exchange rate this week is the Bank of England rate meeting on Thursday. 

While no policy change is expected, some forecasters have predicted the 5-3 vote on interest rates could creep up to 6-2.

The exchange rate received a welcome boost at the end of last week after comments from the UK Chancellor. 

Philip Hammond suggested that Britain’s relationship with Brussels could remain “very similar” for at least three years after the UK formally withdraws from the bloc in 2019.

The comments about a transitional Brexit boosted the pound, which briefly hit €1.124 at the end of the week. 

But Brexit secretary David Davis has made it clear that Mr Hammond’s proposal for a two stage transition period which would delay Brexit for five years was unacceptable.

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