The EURGBP exchange rate was 0.12% higher on Thursday as traders keep the euro supported, but the week will see no more economic data and some consolidation is likely. A report from UEFA Has highlighted the hit to the football world in Europe.
German GDP and IFO business data failed to drive the euro higher, but traders see no more reason to add long bets to the pound after the recent political instability in the last two weeks.
The EUR to GBP rate is trading at 0.8640 in early trading and the pair is unlikely to move too far from the current rate into the weekend.
Euro football clubs could lose 8.7bn euros
A report from UEFA has said that European football clubs could miss out on 8.7 billion euros in revenue as they struggle to rebound from the pandemic. The news comes after UK club Manchester United lost out on penalties to Villareal in the Europa League final, in what will be a dent in the MUFC merchandise machine.
The annual European Club Footballing Landscape study said that lost revenue projections for 2019/2020 and 2020/2021 is 7.2 billion euros for top-tier clubs and 1.5 billion for the lower-tier clubs.
UEFA president Aleksander Ceferin said: “In last year’s report, I said that European football was strong, united, resilient and ready for new challenges. But no one could have predicted that we would have to face the biggest challenge to football, sport and society in modern times.”
The UEFA report highlights another sector of the economy that is being hit hard by the government lockdowns as clubs struggle to see the light at the end of the tunnel with full stadiums likely a long way away from previous records.
German exports to UK plummet
Britain’s exit from the EU, alongside the pandemic, has seen German exports to the UK fall by 30% from December to January, worth £1.7 billion. The Office for National Statistics said that the latest figures sho the biggest fall in imports by value of any major trading partner. With German exports to the UK tumbling, the UK went the other way in March with exports surging by 9.9%.
The latest export drop comes on the heels of a slightly disappointing GDP number, with Europe’s largest economy underperforming the rest of Europe. Traders seem happy give the euro the benefit for now and that is likely due to the political issues and virus cases that are talking points in the country.
The British economy has been boosted by figures showing that private-sector growth this month was at the highest level since the index started in 1998, with hotels, restaurants and other services rebounding strongly. Factory orders also saw a record increase, while business confidence was at all-time highs.
The EURGBP has resistance at 0.8700 and support for the year is below 0.8500 but the pair is stuck in the middle of the range and may not see a catalyst for further movement this week.