– Written by
Frank Davies
STORY LINK Pound-to-Euro Flat Ahead of Key UK Growth Figures
The Pound Euro (GBP/EUR) exchange rate moved sideways on Wednesday, with Sterling unable to make meaningful gains against the single currency despite disappointing Eurozone economic data.
At the time of writing, GBP/EUR was trading at €1.1725, showing little change from the start of the day.
The Pound (GBP) lacked firm direction during Wednesday’s session as the absence of fresh UK economic data provided little incentive for traders to favour Sterling.
At the same time, many GBP investors appeared reluctant to make significant moves ahead of Thursday’s GDP figures, with the release expected to play an important role in shaping sentiment towards the Pound and expectations for future Bank of England (BoE) interest rate rises.
With the key data still to come, Sterling remained muted.
The Euro (EUR) proved resilient on Wednesday, managing to stay afloat despite the release of weaker-than-expected Eurozone economic figures.
Industrial production across the bloc unexpectedly fell by 0.2% in May, missing forecasts for growth of 0.2%. However, the disappointing result was softened by an upward revision to April’s reading, which was increased to 0.3% from the previously reported 0.1%.
Save on Your GBP/EUR Transfer
Get better rates and lower fees on your next international money transfer.
Compare TorFX with top UK banks in seconds and see how much you could save.
Near-Term GBP/EUR Forecast: UK GDP Rebound in Focus for Pound
Attention turns to the UK’s latest GDP figures on Thursday, with markets forecasting a 0.1% rebound in economic output during May. A stronger-than-expected result could provide a boost to Sterling, while a weaker reading may place pressure on the Pound. The currency could see increased movement if the data deviates significantly from expectations.
Political developments may also shape GBP sentiment, as speculation continues around potential cabinet appointments under incoming Prime Minister Andy Burnham.
Elsewhere, broader market factors could impact the Pound Euro exchange rate, with risk appetite, developments in the Middle East and movements in the US Dollar (USD) all likely to influence trading conditions. These factors could contribute to heightened volatility throughout Thursday’s session.
International Money Transfer? Ask our resident FX expert a money transfer question or try John’s new, free, no-obligation personal service! ,where he helps every step of the way,
ensuring you get the best exchange rates on your currency requirements.
TAGS: Pound Euro Forecasts
