The Euro to GBP exchange rate was little moved on Thursday as investors await a speech by European Central Bank President Mario Draghi due to be held later in the session.
The Euro received some support from the publication of data which showed that business confidence in Germany, the Eurozone’s largest economy improved in April.
According to the Ifo German research institute, its index for business climate increased more than forecast this month. The index rose to a seasonally adjusted figure of 111.2 from the 110.7 figure recorded in March. The data beat economist expectations for a reading of 110.5.
The nation’s business assessment index also improved more than expected after rising from March’s figure of 106.4 to 107.3. The figure also beat forecasts for a reading of 105.8. The current assessment Index also increased.
The data underlines that optimism in Germany remains high despite the ongoing tensions between the West and Russia over Ukraine.
Data out Finland showed that the nation’s unemployment rate increased from 9.1% to 9.5% in March and business confidence in France edged lower from the previous month, highlighting the uneven nature of the Eurozone recovery.
The Euro is likely to experience volatility later in the session when ECB President makes a speech in Amsterdam later in the day. Economists will be looking for any signs of an imminent introduction of policies to stave off the threat of deflation.
Sterling meanwhile is likely to be at the mercy of international factors today due to a lack of domestic data releases out of the UK.
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