Pound to euro exchange rate: Sterling DIPS as Eurozone confidence spikes
POUND sterling has dipped against the euro after tracking upwards earlier this morning.
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GBP is buying €1.129, after surging briefly to €1.132 earlier this morning.
The exchange rate suffered after a series of disappointing figures out of the UK last week.
Meanwhile the euro was delivered a notable boost with Eurozone data released on Friday.
Pound euro exchange rate - sterling has dipped after climbing slightly earlier this morning
Inflation rose to 1.2 per cent in June from one per cent the month prior, exceeding expectations for the figure to remain static.
The ECB considered dropping the pledge to boost its huge money-printing programme if needed, but decided it still needed to see more evidence of higher inflation.
It was enough to boost the euro to a one-week high against the pound.
The exchange rate has been further tested today with the release of investor confidence figures.
Pound euro exchange rate - sterling remains vulnerable to Eurozone data
The GBP/EUR exchange rate could dip if the Eurozone's Sentix Investor confidence measure shows an improvement in sentiment
Earlier this morning TorFX currency analyst Laura Parsons said: “The GBP/EUR exchange rate hasn't got off to the best start to the week, with the pairing lingering on the cusp of €1.13.
“The GBP/EUR exchange rate could also dip in the hours ahead if the Eurozone's Sentix Investor confidence measure shows an improvement in sentiment.”
Investor confidence released this morning beat expectations of 28.1, jumping to 28.3 but still short of last month's 28.4 figure.
The pound has also climbed slightly against the US dollar this morning after suffering a significant dip at the end of last week.
Pound euro exchange rate - sterling is buying €1.13
Ms Parsons said: “The pound failed to derive much benefit from US President Donald Trump's inferences on Friday that a UK/US trade deal would happen 'very quickly' and the currency may struggle to push forward today due to a lack of domestic data.”
The GBP/USD exchange rate sits at US$1.29.
Sterling also remains vulnerable to dialogue from the Bank of England (BoE), after several hints at a looming interest rate hike.
Policymakers have made conflicting comments about the decision, but the rate rise vote now stands at 5-3 instead of 7-1.