Pound Fails to Gain Versus Euro (GBP/EUR) Despite UK Factory Growth Hitting 22-Year High
The pound recorded gains against a host of other market majors on Tuesday after UK factory growth reached a 22-year high. The latest Confederation of British Industry (CBI) numbers show that despite Brexit, the UK’s factories are still productive, perhaps due to a tumble in the pound’s value.
CBI chief economist Rain Newton-Smith said: ‘Output growth among UK manufacturers is the highest we’ve seen since the mid ‘90s, prompting the strongest hiring spree we’ve seen in the last three years. Cost pressures are easing and firms are upbeat about the outlook for export orders.’
However, despite the positive news, sterling was unable to make any headway against the euro and instead trended in a narrow range. The single currency was buoyed by positive German IFO business confidence data which rose to 116.0 in July marking a new record, rather than falling to 114.9 as forecast.
The IFO said: ‘Companies’ satisfaction with their current business situation reached its highest level since Germany’s reunification. Their short-term business outlook also improved. Germany’s economy is powering ahead.’
Last week sterling dropped by around 2.5% against the euro, hitting eight-month lows. The pound sterling to euro (GBP/EUR) exchange rate is trending in the region of 1.1181.
Friday 28th July 2017 at 10:00
£1.00 GBP = 1.1183 EURO
£1.00 GBP = 1.3098 USD
£1.00 GBP = 1.6454 AUD
£1.00 GBP = 1.7531 NZD
£1.00 GBP = 1.6437 CAD
£1.00 GBP = 17.00878 ZAR