This follows the publication of Germany’s IFO business climate figures for April, which fell below forecast to 99.2 – with German business expectations and current assessment figures also disappointing. The weak eurozone data has caused a drag on market confidence in the single currency today, with concerns continuing to rise about the bloc’s economic health. The eurozone’s consumer confidence, as well as business confidence, has also fallen in April, causing analysts to forecast a gloomy outlook for the economy in 2019. Meanwhile the pound has stabilised against the euro following comments from the Labour Party leader Jeremy Corbyn that Theresa May is being inflexible over her Brexit deal in cross-party talks.
Mr Corbyn said: “We’ll continue putting our case but quite honestly there’s got to be change in the government’s approach.”
“They cannot keep on just regurgitating what has already been emphatically rejected three times by Parliament, there’s got to be a change.”
Tory MPs, meanwhile, are continuing to push for a leadership challenge to Theresa May.
Further pressure has come in the form of former Conservative MP Ann Widdecombe’s return to the ‘political fray’ not – as would be expected – as a Tory member, but in support of Nigel Farage’s Brexit party as a candidate for the European elections
Ms Widdecombe said: “[I want to re-affirm] the supremacy of the will of the people.”
With no consensus on Brexit emerging from either major party, this is beginning to drag on market confidence in Sterling, limiting some of its gains against the single currency.
Today will see the publication of the UK’s public sector net borrowing figures for March, although these are not expected to benefit the pound.
The pound euro exchange rate will instead likely remain steady today, although with Mrs May’s diminishing approval ratings and increasing pressure from MPs to resign, Brexit uncertainty may drag down the exchange rate again.