The pairing fell today as the euro benefited from its relative safe-haven status as the continuing tariff war between the US and China has hit demand for the Chinese Yen following poor trade data. It comes as Prime Minister Theresa May has continued to defend the 31 October delay to Brexit. Chinese imports from the US slipped by 28 per cent in March, which saw many traders flee to safe-haven currencies like the US dollar and the euro. Today will see the publication of the Eurozone industrial production figures for February, which are expected to decrease.
The euro has also benefited from a weakened pound following the publication of the Spanish CPI figures for March, which came in at a steady 0.4%.
Meanwhile, Mrs May expressed a tone of emergency last night in response to criticism of the October Brexit extension.
She said: “The choices we face are stark and the timetable is clear.
“I believe we must now press on at pace with our efforts to reach a consensus on a deal that is in the national interest.”
This came after the Preisdent of the European Council, Donald Tusk, urged MPs not to ‘waste’ their time, following the EU’s granting of a six-month delay to the Brexit process.
Sterling traders are subdued, with Mrs May now facing mounting pressure from her backbenchers to step down, while cross-party talks are ongoing.
Labour leader Jeremy Corbyn was also critical of critical of the Prime Minister.
He said: “The second extension in the space of a fortnight represents not only a diplomatic failure but is another milestone in the government’s mishandling of the entire Brexit process.”
A spokesman for Downing Street responded: “Bluntly, we will not continue to talk for the sake of it.
“But we believe the discussion and dialogue we are having is valuable and we want to see that continue while we think we are making progress.”
There are no significant UK economic data releases today, with many Sterling traders focusing on the aftermath of the latest Brexit delay instead.