Pound euro exchange rate: gbp steadies against eur

The pound is trading in a narrow range this morning, with investors remaining wary of the UK currency ahead of some key Brexit votes taking place later this evening. Parliament will hold a

number of indicative votes on Brexit this evening which will see MPs attempt to break the current deadlock by choosing a range of alternative options put forward by lawmakers. There will be

a range of differing solutions on offer this evening, including the option to hold a second referendum or revoking Article 50 – strong support for either of which would likely be seen as

positive for the pound. However, Theresa May has already warned that the results of the vote will be non-binding and she may not necessarily take them into account when deciding how to move

forward, something that is likely to cap any upside in Sterling. Meanwhile, the euro remains muted at the start of today’s session following a speech by European Central Bank (ECB) President

Mario Draghi, in which he warned that trade disputes are hurting the Eurozone. Speaking in Frankfurt, Mr Draghi acknowledged that eurozone growth has slowed in 2018 and early 2019,

attributing the slowdown to global trade tensions hitting exports. Mr Draghi said: “The weakness in world trade has continued, which has significantly affected the manufacturing sector. “The

current data suggest that external demand has not yet spilled over significantly into domestic demand, but the risks have risen in the last months and uncertainty remains high.” Looking

ahead, Parliament’s indicative votes will undoubtedly dominate movement in the pound euro exchange rate this evening, likely overshadowing the release of the Confederation of British

Industry’s latest retail figures later this morning.    However, at the same time pound investors will be paying close attention to Mrs May as she attempts to build support for her

withdrawal deal. Her stated aim will be to hold a third ‘meaningful vote’ before the end of the week. Meanwhile, euro investors are likely to turn their attention to the latter half of the

week with the publication of Germany’s latest CPI figures potentially offering some support to the euro if there has been a notable pick-up in inflation this month.