Pound euro (GBP/EUR) quiet amid absence of data
(Updated 16:30, 16/05/24) The pound euro (GBP/EUR) exchange rate is continuing to trade in a narrow range and remains near an eight-day high struck earlier in today’s session.
The pound (GBP) was unmoved by some hawkish commentary this afternoon from Bank of England (BoE) policymaker Megan Greene.
Greene said:
‘In considering for how long we must retain our restrictive stance before policy should be eased, I think the burden of proof therefore needs to lie in inflation persistence continuing to wane.’
Turning to the euro (EUR), a further lack of economic data releases saw the common currency continue to trade without a clear direction for the remainder of Thursday’s session.
At the time of writing, GBP/EUR is trading at around €1.1656, virtually unchanged from today’s opening levels.
Original article continues below:
Pound euro (GBP/EUR) exchange rate muted amid lack of data
The pound euro (GBP/EUR) exchange rate is trapped in a narrow range this morning, with the pairing holding at an eight-day amid the absence of UK and Eurozone economic data.
At the time of writing, GBP/EUR is trading at around €1.1654, virtually unchanged from this morning’s opening levels.
Pound (GBP) flat ahead of BoE speech
The pound (GBP) is trading sideways against the majority of its peers this morning as UK macroeconomic data remains thin on the ground.
Sterling is muted as GBP investors await a speech from Bank of England official Megan Greene, who is due to speak later this afternoon.
Amid a period of muddled BoE messaging, any hints surrounding the future of monetary policy could impact Sterling movement in the second half of today’s European session.
On Tuesday, BoE official Huw Pill commented:
‘I think it’s not unreasonable to believe that through the summer we will begin to see enough confidence in the decline in persistence that Bank Rate will come into consideration. There has been an easing of the labour market but it still remains pretty tight by historical standards.’
Should Greene echo her colleagues’ recent sentiments it may cement bets that the BoE will pursue an interest rate cut in June, which in turn could pull the pound lower..
Euro (EUR) muted amid absence of data
The euro (EUR) is treading water this morning as a shortage of Eurozone data has seen the single currency struggle to attract investor attention.
Elsewhere, a somewhat unclear market mood this morning is serving to further undermine the euro. As a safe-haven currency, EUR exchange rates are fluctuating amid this morning’s mixed trade.
A sharp pullback in the US dollar (USD) amid Federal Reserve rate cut bets helped to cheer markets on Wednesday, however ongoing geopolitical tensions and some weak Japanese GDP figures appear to have soured sentiment this morning.
Pound euro exchange rate forecast: Eurozone data to drive movement?
Looking ahead, the primary driver of movement for the pound euro exchange rate for the remainder of the week will likely be the Eurozone’s finalised inflation data.
April’s finalised figures are expected to confirm inflation continued to cool, nearing the European Central Banks (ECB) 2% target, the single currency may face fresh selling pressure in the aftermath of the release.
Furthermore, some ECB speeches on the calendar tomorrow may also potentially impact EUR exchange rates.
With a recent slew of dovish commentary from ECB officials, should the central bank’s Vice President Luis De Guindos hint as upcoming interest rate cuts in his address tomorrow, the euro will likely close the week on the back foot.
Elsewhere, the currency pairing is also likely to be driven by market risk appetite. Should a more cautious mood prevail on Friday, the pound euro exchange rate is likely to dip, however, should markets turn to more upbeat trading conditions, the currency pairing could gain ground.