While YouGov’s flash poll following the discussion indicated a modest win for Boris Johnson – at 51 percent to 49 percent – this failed to further consolidate the Conservative’s lead on the Labour Party, leaving markets feeling cautious ahead of the 12th December general election. Piotr Matys, a Currency Analyst at Rabobank, said: “The debate was not a game changer… The market reaction would have been stronger if Jeremy Corbyn had gained an advantage in the polls but that doesn’t appear to have been the case.”
The GBP/EUR exchange rate held steady today, with markets generally favouring a Tory majority in the upcoming election on hopes that a Conservative government could finally break the Brexit deadlock.
The euro struggled also struggled despite optimistic comments from Philip Lane, the European Central Bank’s (ECB) chief economist, who said in an interview with the Italian daily la Repubblica that he expects the Eurozone economy to recover “in the next year or two”.
However, Mr Lane said that the Eurozone’s current inflation rate of 1 percent is “unsatisfactory”, but trusts that the bank’s monetary stimulus will encourage it to grow.
ECB President Bostjan Vasle also added that the bank’s stimulus package had been improving the Eurozone’s economy, but more fiscal support was required from governments to improve the bank’s growth outlook.
In European economic data, today saw September’s Eurozone construction output fall from 0.8 percent to -0.7 percent on the year, further heightening concerns for the bloc’s fragile economy.
The pound to euro exchange rate will continue to be driven by UK political developments, with any indications of the Tories beginning to lose their lead against Labour likely seeing Sterling sink.