Pound euro exchange rate wavers following German factory orders
The pound euro (GBP/EUR) exchange rate is largely muted this morning, however is trading at a fresh one-week low, following the publication of Germany’s latest factory orders.
At the time of writing, GBP/EUR is trading at around €1.1866, virtually unchanged from this morning’s opening levels.
Euro (EUR) supported by German data
The euro (EUR) is being marginally underpinned this morning by the publication of Germany’s latest factory orders data for July.
The index surpassed market expectations this morning and fell from 4.6% to 2.9% rather than a more severe -1.5% expectation, and has lent the euro some modest support at the start of today’s trading session.
The German statistics office cited an increase in large-scale orders as one of the primary reasons for July’s uptick.
The single currency is likely to continue on its upward trajectory today, as the Eurozone will publish its latest retail sales data later this morning.
Should the index come in as expected and confirm a marginal rebound in consumer spending in July, EUR exchange rates could remain on the front foot for the remainder of the day.
Pound (GBP) holds steady despite minimal data
The pound (GBP) is managing to hold steady against the majority of its peers this morning despite the absence of any market moving data.
The pound is likely drawing support from continued economic optimism following yesterday’s better-than-expected services PMI.
August’s index was revised higher, reinforcing the country’s current economic strength, lifting GBP exchange rates through to the start of this morning’s European session.
Pound euro exchange rate forecast: Eurozone data to remain in the spotlight?
Looking ahead, the primary catalyst of movement for the pound euro exchange rate tomorrow will likely be several economic data releases from within the Eurozone.
Up first, Germany will release its latest balance of trade data which could lift EUR exchange rates in the first half of tomorrow’s session.
As Germany’s trade surplus is forecast to rise as well as an expected uptick in exports, this could buoy the common currency should the data print as expected.
In the afternoon, the Eurozone will publish its third estimate GDP reading for 2024’s second quarter which could undermine any potential euro gains should the data dip from previous estimates.
Turning to the pound, UK data will be absent from tomorrow’s data calendar, which could see GBP trade mostly in line with risk dynamics.
Should markets return to upbeat trade, Sterling could be buoyed on the back of its nature as an increasingly risk-sensitive currency.