Despite a slight decline on Wednesday, the euro stays above 0.8700, which is close to seven-week highs.
As demand mounts for Prime Minister Keir Starmer to step down, the pound continues to decline.
The Euro is supported this week by the ECB's hawkish posture.
The seven-week high in the 0.8745 region is not far away, and the Euro (EUR) maintains the majority of the gains made over the past several days despite edging lower against the British Pound (GBP) on Wednesday. Prime Minister Keir Starmer is under further pressure to step down due to a political crisis in the UK, which is also making the pound weaker against its major peers this week.
Further proof of the UK's ambassador to the US, Peter Mandelson, having ties to convicted sexual offender Jeffrey Epstein has been made public by news sources. This has set off a chain of events that has led to Starmer being called to resign by its own cabinet ministers.
The erratic political climate in the UK is maintaining the British pound among the major currencies with the worst performance in the first half of the week, even in the absence of important UK data releases. Conversely, the European Central Bank's aggressive monetary policy position from last week continues to strengthen the Euro.
The UK's Q4 preliminary Gross Domestic Product (GDP) data, which are anticipated to demonstrate a mild deceleration to a 1.2% annualized growth from 1.3% in the previous quarter, will be the main focus on Thursday. In addition, manufacturing production is expected to have reached a standstill in December. To overcome the present negative pressure, the pound would require a good surprise.
The schedule has been limited in the Eurozone as well, but speakers from the European Central Bank have made encouraging remarks. President Lagarde downplayed the recent low Consumer Prices Index (CPI) numbers, maintaining his confidence that inflation would stabilize at about 2%. Vice President De Guindos backed the idea that interest rates will stay stable for a while on Tuesday by stating that the recent Euro strengthening is not particularly noteworthy.
As demand mounts for Prime Minister Keir Starmer to step down, the pound continues to decline.
The Euro is supported this week by the ECB's hawkish posture.
The seven-week high in the 0.8745 region is not far away, and the Euro (EUR) maintains the majority of the gains made over the past several days despite edging lower against the British Pound (GBP) on Wednesday. Prime Minister Keir Starmer is under further pressure to step down due to a political crisis in the UK, which is also making the pound weaker against its major peers this week.
Further proof of the UK's ambassador to the US, Peter Mandelson, having ties to convicted sexual offender Jeffrey Epstein has been made public by news sources. This has set off a chain of events that has led to Starmer being called to resign by its own cabinet ministers.
The erratic political climate in the UK is maintaining the British pound among the major currencies with the worst performance in the first half of the week, even in the absence of important UK data releases. Conversely, the European Central Bank's aggressive monetary policy position from last week continues to strengthen the Euro.
The UK's Q4 preliminary Gross Domestic Product (GDP) data, which are anticipated to demonstrate a mild deceleration to a 1.2% annualized growth from 1.3% in the previous quarter, will be the main focus on Thursday. In addition, manufacturing production is expected to have reached a standstill in December. To overcome the present negative pressure, the pound would require a good surprise.
The schedule has been limited in the Eurozone as well, but speakers from the European Central Bank have made encouraging remarks. President Lagarde downplayed the recent low Consumer Prices Index (CPI) numbers, maintaining his confidence that inflation would stabilize at about 2%. Vice President De Guindos backed the idea that interest rates will stay stable for a while on Tuesday by stating that the recent Euro strengthening is not particularly noteworthy.
