- The British Pound (GBP) falls against the Euro and the USD
- The feeling of risk deteriorates further
- Euro (EUR) up after hitting 5-year low
- German industrial production, eurozone GDP data due
The Pound Euro (GBP/EUR) exchange rate is holding steady after registering losses during the previous session. The pair stabilized at -0.22% at €1.2069 on Monday after a volatile start to the week, trading as high as €1.2191 as a 5-year high before falling 100 points. As of 05:45 UTC, GBP/EUR is trading +0.01% at €1.2070.
The euro staged a reversal on Monday, rallying from session lows after German Chancellor Olaf Scholz said Germany would not support a move to impose sanctions on Russian oil. News over the weekend that the United States was keen to impose sanctions on Russian energy initially sent the euro into a tailspin amid fears of soaring inflation and a slowdown in the economy. growth.
Macro data supported the euro, German retail sales jumped 2% m/m in January as Omicron fears faded, and German factory orders also jumped 1.8% in January. month-over-month, beating growth forecasts by just 1%.
Eurozone investor sentiment highlighted the hit to morale this month as Russia invaded Ukraine, falling to -7 from 16.6 in February, a 16-month low. Digging deeper into the data, Germany was the hardest hit by investor confidence, with the index dropping to -5.2 from 23.1 in February.
Going forward, headlines about Russia will remain front and center, fueling risk sentiment. German Industrial Production figures are also expected to show a 0.5% increase in January on a monthly basis and Eurozone GDP, although this is the third estimate and is expected to confirm growth of 0, 3% quarter-on-quarter.
The pound came under pressure against both the euro and the US dollar in the previous session as risk sentiment remained low as investors digested events in Ukraine. Putin appears undeterred by sanctions on Russia, saying the invasion will continue until Ukraine agrees to his demands and stops resistance, pouring cold water on the prospect of a ceasefire. fire.
There is little economic data in the UK this week. The calendar is relatively quiet until Friday’s GDP data.