The Pound to Euro (GBP/EUR) exchange rate climbed on Thursday afternoon, advancing by around +0.70% and breaking through the 1.15 barrier after European Central Bank (ECB) President Mario Draghi held a press conference. The Pound to Euro (GBP/EUR) exchange rate is now trending at levels of 1.1497.
The eurozone economy turned in a robust 2017 performance, with annual growth hitting 2.5 percent, the best in a decade.
This suggests that the euro zone's economic downturn was more severe than earlier thought and makes the recovery even more protracted. Europe's largest economy saw business sentiment drop to its lowest level in nearly a year in April, while sentiment in Italy and France also deteriorated.
The Frankfurt-based bank also said it planned to maintain its bond purchases under its quantitative easing policy at EUR30 billion a month until at least September this year.
Meanwhile, the prospect of a full-scale trade war could also quickly hurt growth in the region - a potential risk highlighted by policymakers at Europe's central bank last month.
At a press conference, ECB President Mario Draghi admitted some moderation of the Eurozone economy.
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He said the plight of Syrian refugees in the region is getting worse, and will only detotiarion with reduced global funding for aid.
This week's European Central Bank meeting comes as leaders of the eurozone's two biggest economies - France's Emmanuel Macron and Germany's Angela Merkel - visit Washington for talks with US President Donald Trump in a bid to end trade and geopolitical tensions.
"What is certainly known is that these events have a profound and rapid effect on confidence, on business confidence, on exporters' confidence, generally speaking, and confidence can in turn affect the growth outlook".
Draghi was expected to face particularly probing questions about reports that the German government expected the USA to impose tariffs on European metals imports - potentially sparking a transatlantic trade war that could undermine growth and inflation.
The US leader has also vowed to impose tariffs on billions of euros in Chinese imports, prompting Beijing to threaten retaliation.
The ECB's interest rate on its main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at zero, 0.25 and -0.40 percent respectively.