Euro to Pound Exchange Rate Climbs Ahead of Friday’s Slew of Eurozone Data
The Euro to Pound Sterling (EUR/GBP) exchange rate edged higher this afternoon in quiet trade, as investors continued to digest data and political developments from recent sessions.
Since opening this week at the level of 0.8587, EUR/GBP has trended with a downside bias. Overnight, EUR/GBP briefly hit a low of 0.8500 – the worst level for the pair since May 2017.
EUR/GBP has spent much of today’s session rebounding slightly from those worst levels, and at the time of writing was trending closer to the level of 0.8527.
The Euro to Pound exchange rate could see more solid movement tomorrow, as a slew of major Eurozone ecostats will be published.
Euro (EUR) Struggles to Find Support in Eurozone Confidence Stats
Most of this week’s notable Eurozone data so far has been confidence survey data for November and December.
German and French consumer confidence beat expectations earlier in the week, and today’s Eurozone confidence stats were mixed but overall indicated that economic confidence in the bloc was recovering.
However, higher confidence was not enough to give the Euro (EUR) a strong boost in demand, with investors still awaiting more solid economic data due tomorrow and next week.
Pound (GBP) Exchange Rates Slip as Investors Digest Election Outlook
Last night, the Pound (GBP) saw a jump in demand in reaction to a major seat-by-seat estimate poll from YouGov.
The poll indicated that the ruling Conservative Party was on track to win a comfortably majority at the election a fortnight from now. This made investors more confident that a no-deal Brexit could be avoided.
Still, as a Conservative majority is still largely priced in, and the opposition Labour Party has recently been climbing in the polls, some analysts believe the Pound’s potential for further gains is limited.
Concern that the election race could still tighten, as well as uncertainty over what would follow the election, left the Pound slipping from its best levels this afternoon.
Euro to Pound (EUR/GBP) Exchange Rate Investors Await Key Eurozone Data
The week’s biggest slew of influential Eurozone data will be published tomorrow, and is likely to cause EUR/GBP movement in the absence of surprising UK political developments.
German retail sales will start the day off, followed by French growth and inflation rate figures.
Later in the morning, German unemployment, as well as overall Eurozone inflation and unemployment stats will be published.
If they beat expectations, they could bolster hopes that the Eurozone economy could see a recovery soon.
This would make it easier for the Euro to Pound (EUR/GBP) exchange rate to recover more before markets close for the week, especially if the Pound is weakened by fresh UK election uncertainty.