Last week, due to the uncertainty surrounding the political change in Italy, the Euro weakened against 5 of the major currencies.
It is expected that the Euro will see a momentary reprieve; however, before the new Italian government can take any solid actions, other factors could influence the Euro.
The EUR/GBP pair recovered this morning due to supportive factors such as the UK manufacturing PMI and reports of a potential solution to the Northern Ireland border issue resulting in the Pound rising on Friday.
The bullish pressure subsides as new trading week begins and is currently backed up by a decent demand rise for the pair amongst worries surrounding the political situation in Italy.
The rise appeared to be unaffected by the stronger than anticipated UK Construction PMI print for May.
On a separate note, Bank of England, MPC member Silvana Tenreyro is expected to give a speech during the New York trading session which would be looked onto with renewed inspiration.
It has been revealed that May is planning talks with Trump later this week, regarding the somewhat impending trade war over aluminium and steel tariffs.
The day also saw the release of UK’s construction figures which were flat. Max Jones of Lloyds Bank Commercial Banking said: “Given some of the challenges affecting the wider economy, a flat PMI is not a major surprise…”
Tomorrow brings a release of purchasing managers’ survey data. Till then, all we can say is, watch this space for news of BoE raising interest rates.