The Pound-Euro rate could rebound if UK growth accelerates as forecast, while sparse Eurozone data may leave the single currency driven by wider market trends.
The Pound Euro (GBP/EUR) exchange rate traded in a narrow range on Wednesday as a lack of Eurozone and UK data left the pairing subdued.
At the time of writing, GBP/EUR was trading at €1.1957, virtually unchanged on the day but having crawled up from Tuesday’s two-week low of €1.1940.
Pound to Euro (GBP/EUR): 1.197043 (+0.16%)
Euro to Dollar (EUR/USD): 1.108659 (-0.74%)
DAILY RECAP:
The Pound (GBP) lacked a clear direction on Wednesday as British economic data remained absent from the calendar.
In addition, GBP investors were reluctant to place aggressive bets on Sterling ahead of the UK’s third-quarter GDP figures on Thursday, which could prove to be highly impactful for the currency.
Meanwhile, the Euro (EUR) was subdued on Wednesday as Eurozone economic data was also thin on the ground.
Wider market trends also failed to offer EUR a clear direction.
On one hand, the common currency was pressured by its strong negative correlation to the US Dollar (USD), as the latter currency ticked higher.
However, losses were cushioned by reports that US-mediated talks between Ukraine and Russia had been ‘constructive and quite substantive’ so far, according to Ukrainian President Volodymyr Zelenskyy.
Near-Term GBP/EUR Forecast: UK GDP in the Spotlight
Looking forward, the UK’s third-quarter GDP figures are in the spotlight on Thursday. Markets expect British economic growth to have accelerated to 0.7% in Q3, from 0.5% in Q2.
If the data prints as forecast, optimism around the resilience of the UK economy and bets on further interest rate hikes from the Bank of England (BoE) could propel the Pound higher.
Meanwhile, Eurozone data is thin on the ground on Thursday, potentially leaving EUR to trade on wider market trends.
French bond market movements could influence the common currency.
The Pound Euro (GBP/EUR) exchange rate traded in a narrow range on Wednesday as a lack of Eurozone and UK data left the pairing subdued.
At the time of writing, GBP/EUR was trading at €1.1957, virtually unchanged on the day but having crawled up from Tuesday’s two-week low of €1.1940.
Pound (GBP) Flat in Absence of Data
The Pound (GBP) lacked a clear direction on Wednesday as British economic data remained absent from the calendar.
In addition, GBP investors were reluctant to place aggressive bets on Sterling ahead of the UK’s third-quarter GDP figures on Thursday, which could prove to be highly impactful for the currency.
Euro (EUR) Muted amid Mixed Factors
Meanwhile, the Euro (EUR) was subdued on Wednesday as Eurozone economic data was also thin on the ground.
Wider market trends also failed to offer EUR a clear direction.
On one hand, the common currency was pressured by its strong negative correlation to the US Dollar (USD), as the latter currency ticked higher.
However, losses were cushioned by reports that US-mediated talks between Ukraine and Russia had been ‘constructive and quite substantive’ so far, according to Ukrainian President Volodymyr Zelenskyy.
GBP/EUR Exchange Rate Forecast: UK GDP in the Spotlight
Looking forward, the UK’s third-quarter GDP figures are in the spotlight on Thursday. Markets expect British economic growth to have accelerated to 0.7% in Q3, from 0.5% in Q2.
If the data prints as forecast, optimism around the resilience of the UK economy and bets on further interest rate hikes from the Bank of England (BoE) could propel the Pound higher.
Meanwhile, Eurozone data is thin on the ground on Thursday, potentially leaving EUR to trade on wider market trends.
French bond market movements could influence the common currency.
