Eurozone business sentiment surveys ahead, all eye on industrial optimism

The outlook for the pound is today dominated by Euro area industrial and consumer confidence data for May, we also have household and business sentiment.

"After recovering between October 2012 and February this year, industrial optimism has softened a little recently as euro area growth prospects disappointed. However, the index is expected to edge up this month, on the back of the recent cut in the ECB's key refinancing rate. On the other hand, consumer confidence has recovered steadily since last November, broadly in line with the momentum of euro area equity markets," says a morning currency note from Lloyds Bank Research.  

Sentiment on the pound to euro exchange rate

Looking at speculative sentiment on the pound / euro we note spread betting firm IG Index have 60 pct of their open positions on the pair expecting the price to rise.

61 pct of those with open positions on GBP/USD are long on sterling.

Euro dollar exchange rate latest

Overnight the euro gained against the US dollar ahead of the euro zone’s consumer confidence data to be released later today.

"Yesterday, the EUR strengthened 0.79% versus the USD, to close at $1.2947, as consumer price inflation rose in Germany curbing expectations over further monetary easing by the European Central Bank," says a morning currency briefing from Guardian Stockbrokers.

"EUR/USD jumped to $1.298 from lows in the $1.284 region, as it reacted to comments by the OECD calling for the ECB to take more action to lift the eurozone economy out of recession.  There was also some fairly encouraging German CPI data, but a disappointing German unemployment change reading was enough to keep hopes of further stimulus alive. It certainly seems like the momentum for the single currency is to the upside, with a barrier in the $1.30 region," says Stan Shamu at IG Index in Melbourne.