Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Euro Rate Forecast (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

EURGBP Moves Lower After UK GDP Growth Improves

% of readers think this story is Fact. Add your two cents.


The EURGBP exchange rate has pulled back from the 0.8685 level for a second day after the latest UK GDP growth release showed an improvement for the country. The market will now await German and European ZEW sentiment surveys.

The EUR to GBP rate is trading at 0.8650 and could see lower levels if the European business indicators are more pessimistic.

UK GDP Grows Despite Lockdown

The UK economy expanded by 0.4% in February, which comes after a 3% drop in January when a stricter lockdown began. The numbers were better than expected with boosts from the manufacturing and construction sectors, while the January export slump related to the enforcement of a last-minute Brexit was also a factor.

The February reading puts the UK economy almost 8% lower than the pre-virus growth levels, but the economy started to reopen yesterday, and this should boost activity once more. ING markets expect growth to be around 5% in the second quarter, but that could be increased by the level of consumer activity in the weeks ahead, UK households had built up record amounts of savings and there will be some desire to continue saving after the recent economic shocks, but with summer holidays looking like a distant dream for many, domestic spending will see a boost.

The UK figures come on the back of an IMF upgrade for 5.3% UK growth in 2021 and these latest figures could nudge that higher, whilst last week’s services PMIs and construction activity were also a boost.

UK to EU trade improved in February with UK exports to Europe recovering a big share of the January declines. Imports from Europe stayed at lower levels, and this is likely due to fourth quarter stockpiling ahead of the Brexit deal.

ZEW Sentiment Will be Next Guide

The Eurozone and German economies will see the release of ZEW economic sentiment surveys this morning and the survey of business owners could be affected by the vaccine rollout and continued lockdowns.

Investors appear to be giving the EU some benefit of the doubt in the economic growth outlook, but today’s UK figures are another sign that the British economy is growing into its reopening while the EU still grapples with vaccines and a third wave of the virus.

The UK will allow its consumers to get back and boost the services sector, while manufacturing and construction have also ticked higher. Employment data has also been positive and the outlook for travel means that UK households are probably going to spend any pent-up savings at UK establishments, which will starve the European tourism scene for another year. The European Central Bank are also more likely than the BoE to require further stimulus which will weigh on the single currency.

EURGBP is 0.20% lower in early trading on Tuesday and any signs of weakness in the ZEW survey could hurt the euro once again. Get in touch using the form below to discuss how your upcoming euro exchange could be impacted.

The post EURGBP Moves Lower After UK GDP Growth Improves appeared first on Euro Rate Forecast.



Source: https://www.eurorateforecast.com/2021/04/eurgbp-moves-lower-after-uk-gdp-growth-improves/


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST


Order by Phone at 888-809-8385 or online at https://www.herbanomic.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse
Loading...

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

MOST RECENT
Load more ...

SignUp

Login

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.