Moving almost entirely on fierce ‘Brexit’ debates this week, Pound traders scarcely noticed Tuesday’s poor data – which revealed the Treasury had missed its net borrowing targets, and that PSNCR’s public finances figures had entered negative territory.
The Euro to Pound Sterling (EUR/GBP) exchange rate attempted to recover after plummeting in the first half of the week due to bets that the UK was unlikely to leave the EU in June. Since then, optimistic Eurozone news has boosted the Euro.
EUR/GBP’s fall began to slow on Wednesday evening after the pairing hit 0.7566, its lowest point since the 1st of February.
By Thursday the Euro had managed to gain on the Pound after the British currency was weakened by below-forecast year-on-year UK GDP data.
The Euro achieved a high of 0.7614 against its UK peer.
Sterling’s gains were extended further as an increasing number of independent economic organisations have been issuing warnings on the possible effects of a ‘Brexit’.
The Pound could weaken further if the ‘Leave’ campaign ramps up its arguments or offers an influential post-‘Brexit’ forecast. Sterling could also solidify even more gains on news that would serve to strengthen the ‘Remain’ campaign.
The Euro to Pound Sterling (EUR/GBP) exchange rate trends in the region of 0.7605, while the Pound Sterling to Euro (GBP/EUR) exchange rate trades around 1.3145.