Spain: GBP/EUR News – Pound edges lower as May loses Brexit vote.
The Pound to Euro exchange rate was left trading in the region of €1.1370, down slightly on the week’s opening levels.
Although the Euro has been feeling the pressure this week as data indicates that growth in the Eurozone’s largest economy is slowing, the GBP/EUR exchange rate slipped on Thursday as PM Theresa May failed to secure the backing of her party in the latest Brexit vote.
However, Sterling recoupled some of its losses before the weekend as the UK’s retail sales data surpassed forecasts.
UK consumer spending, excluding auto fuel, increased 1.2% on the month in January, rather than the 0.2% forecast.
On the year retail sales excluding auto fuel were up 4.1%, smashing the 3.2% forecast. The figures for December were also positively revised.
Back to Brussels, UK Employment Data Ahead
This week the focus will be back on Theresa May as she returns to Brussels to attempt to renegotiate Britain’s deal with the EU.
If it looks as though no concessions will be made, concerns about the prospect of the UK leaving without a deal could put the pound under pressure.
However, the UK is also set to publish its latest employment figures on Tuesday, and a strong showing in average earnings could prove Pound-positive.
The GBP/EUR exchange rate could also benefit if the week’s run of Eurozone data (including PMI figures) add fuel to fears of an economic slowdown in the Eurozone.