The Pound to Euro (GBP/EUR) exchange rate has been climbing this morning, after falling to an almost one-year low this week as Brexit concerns weighed on markets. This week, French Prime Minister Edouard Philippe called for ministers to begin preparing for a no-deal Brexit as a contingency.
France Prepares for No Deal Brexit, Pound Softens to Almost One-Year Low Vs Euro (GBP/EUR)
The statement from the French PM’s office said that he had ‘tasked ministers to prepare contingency measures that would be necessary to mitigate the difficulties linked with this unprecedented challenge.’
It seems parts of the EU are getting jittery as Brexit progress fails to be seen; with the October deal deadline just around the corner, there’s a significant amount of work to be done, not to mention the potential for political instability should negotiations head south. Additionally, reports have surfaced that MPs could be denied access to an economic analysis of the impact of a no Brexit and it’s negative consequences. This isn’t good news for MPs who will need to vote on the deal before the end of the year.
German Consumer Confidence Slips, Investors Eye US GDP for GBP/USD Exchange Rate Movement
In the Eurozone, economic data has shown that German Consumer Confidence has taken another trip lower, coming in at 10.5 in September rather than the 10.6 expected which would have matched August’s reading. GfK who produce the data, stated:
‘Despite the second decline in a row, consumers continue to assume that the good consumer economy will continue even if the dynamic could possibly drop off somewhat. Therefore, GfK expects that private consumption for this year will increase by 1.5% in real terms and meet the GfK forecast made at the beginning of the year.’
Meanwhile in the US, hopes have been buoyed that the US and Mexico will reach a deal to replace the North American Free Trade Agreement (NAFTA) which could also include Canada in coming days. Investors in the US Dollar will be looking towards influential Stateside data today such as the latest US Gross Domestic Product (GDP) reading. The annualised figure is expected to soften slightly, from 4.1% to 4.0% in the second quarter.
Interbank Exchange Rates Today
Today, the Pound to Euro (GBP/EUR) exchange rate is trading between interbank highs of 1.1042 and lows of 1.0998. The Pound Sterling to US Dollar (GBP/USD) exchange rate is trading between interbank levels of 1.2845 and 1.2888.