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Pound euro exchange rate: GBP/EUR steady as opposition MPs rally


Cross-party rebel and opposition MPs have just four days to pass legislation designed to block a no-deal Brexit before parliament breaks for party conference season next week. While investors have become increasingly jittery, Labour leader Jeremy Corbyn presented an optimistic front: “Labour wants to prevent a no-deal Brexit, and to have a general election. 

“I am confident we can have both, and we’ve been in discussions about a way to achieve this. We will continue to work across parliament towards this goal and will have further meetings to this end in coming days.”

In economic news, August’s Markit Construction PMI for the UK fell deeper into contraction territory, inflicting further negative sentiment on a Brexit-beleaguered Sterling.

Duncan Brock, the Group Director at the Chartered Institute of Procurement and Supply, commented: “The sector fell deeper into contraction as continuing uncertainty and a weakened UK economy took a sizeable bite out of this month’s construction activity. 

“Inevitably business confidence followed suit, dropping like a brick to its worst since December 2008 and close to the lowest depth seen in the previous recession.”

Meanwhile the euro held steady against the pound today following the release of July’s Eurozone Producer Price Index, which confirmed consensus, lifting from -0.6 percent to 0.2 percent. 

However, as the Eurozone’s economy still remains soft many EUR traders remain reticent, particularly as the German powerhouse economy continues to threaten a third-quarter recession. 

In European politics, the Italian coalition hangs in the balance as members of the anti-establishment Five-Star Movement (M5S) vote to decide whether they will form a coalition with the centre-left Democratic Party. 

A failure in the proposed union could exert some pressure on the euro as uncertainty returns to the Italian political arena. 

A joint statement from leaders of the M5S said: “This is a delicate moment for the country. 

“For us, a mandate from citizens is a serious matter, it lasts five years, as laid out in the constitution so that a government programme can be carried out.”

The pound euro exchange rate could improve if MPs opposed to a no-deal Brexit gain traction within parliament today. 



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