The pound continues to rise against the euro although it is slightly subdued compared to the gains it put in over the last session. Following a speech in the Commons yesterday during which she urged MPs to back her, Prime Minister Theresa May, talking about the UK leaving the EU, commented: “I have found a real determination to find a way through which allows the UK to leave with a deal. That engagement has already begun to bear fruit. Parliament should do its duty so our country can move forward.”
According to Mrs May, the UK remains “firmly on course” to leave the European Union.
Yesterday Sterling rallied against all major currencies following Mrs May’s promise to give MPs a vote on delaying Brexit, with GBP/EUR hitting a 21-month high.
Figures out of Italy this morning revealed that consumer confidence there had fallen again during the month of February.
But it wasn’t all bad news for the beleaguered Eurozone member, with business confidence showing a slight uptick against expectations that it would fall. Nevertheless, figures for the whole Eurozone revealed that industrial confidence fell markedly in February, and consumer confidence remained subdued.
However, the pound could slip against the euro tomorrow following the release of February’s Gfk UK consumer confidence.
The forecast suggests confidence will continue to slide to -15, after last month’s -14, which could dampen sentiment in the pound.
The pairing could slip further following the release of Germany’s Harmonized Index of Consumer Prices for February.
If the figure shows steady growth of 1.7 per cent as forecast, the euro could rise.
In a week of very few data releases Brexit will remain one of the main catalysts for movement in the GBP/EUR pairing, as the 12 March ‘meaningful vote’ approaches, followed by two more potential days of voting.
Any further indication that the UK will avoid a hard Brexit is likely to buoy Sterling today.