GBP/EUR Exchange Rate Steady as UK Politics in Focus
The Pound to Euro (GBP/EUR) exchange rate is in a holding pattern this morning as markets await the publication of Labour’s election manifesto later in the day.
At the time of writing the GBP/EUR exchange rate is trading at around €1.1670, virtually unchanged from today’s starting levels.
Pound (GBP) in Focus as Corbyn Prepares to Launch Labour Manifesto
The Pound (GBP) is rangebound this morning as UK politics remains in focus ahead of the publication of Labour’s election manifesto.
Labour leader Jeremy Corbyn is set to outline his party’s election pledges in a speech scheduled for 11:00 GMT.
Corbyn’s ‘manifesto of hope’ is expected to outline a number of radical policies in which he claims constitute the most ‘ambitious plan to transform our country in decades’.
General election 2019: Corbyn to unveil Labour's 'most radical' manifesto https://t.co/BZXQnv9TiF
— BBC Politics (@BBCPolitics) November 21, 2019
An extract from Corbyn’s speech was published by the Labour party last night:
‘This is a manifesto of hope. A manifesto that will bring real change. A manifesto full of popular policies that the political establishment has blocked for a generation. Those policies are fully costed, with no tax increases for 95% of taxpayers.’
GBP investors will be watching the speech closely as they assess the potential economic impact of Labour’s policies as well as how they are received by the public.
If a positive reception to the manifesto is seen as bolstering Labour’s chances at the upcoming election then it’s likely we could see the Pound drift lower.
Euro (ECB) Muted ahead of ECB Minutes
Meanwhile, the Euro (EUR) is also trading sideways this morning as traders await the publication of the minutes from the European Central Bank’s (ECB) October policy meeting.
While the minutes are unlikely to contain any major revelations, they could dent the Euro if they show that there is still notable support within the bank for further stimulus.
The minutes may also shape expectations for Christine Lagarde first public speech as ECB President on Friday, with EUR investors eager to hear how closely she plans to follow in her predecessor’s footsteps.
GBP/EUR Exchange Rate Forecast: How Might Tomorrow’s PMI Releases Impact the Pairing?
Looking ahead, the publication of both the UK’s and Eurozone’s latest PMI figures are likely to be the key catalysts of movement in the Pound to Euro (GBP/EUR) exchange rate at the end of this week’s session.
In terms of the UK release, economists forecast that the PMI data will show that growth in the private sector continued to stagnate in November, likely undermining Sterling sentiment.
GBP investors will also keep an eye on domestic politics, with ongoing uncertainty likely to cap any potential upside in the Pound even if the PMI figures surprise to the upside.
Meanwhile, the Eurozone figures look to be a bit of a mixed bag, which could limit movement in the Euro.
The bloc’s service sector is expected to have continued to expand this month, abet at a modest pace.
However, the manufacturing PMI is expected to have remained firmly in contraction territory, for what is set to be the Eurozone’s factory sector’s tenth consecutive slump in growth.