The GBP/EUR exchange rate remained steady on UK Election Day, with GBP trading at around €1.1806. The Pound struggled to gain momentum as voters headed to the polls, with the Labour party expected to win a majority according to polls. A landslide victory for Labour could strengthen Sterling sentiment.
On the other hand, the Euro stayed flat against most currencies after German factory orders declined unexpectedly in May. The Eurozone’s largest economy saw a decrease in orders for aircraft, ships, trains, and automotive products, marking the fifth consecutive month of decline.
Looking ahead, the outcome of the UK general election will likely be the main driver of movement for the GBP/EUR exchange rate. The Eurozone will also release retail data, with expectations of an increase in retail sales in May. Additionally, German industrial production data is expected to show a slight increase, which could support EUR exchange rates.
Overall, market sentiment and risk appetite will play a role in determining the direction of the GBP/EUR exchange rate for the rest of the week.