Pound euro exchange rate subdued ahead of economic data releases
The pound euro (GBP/EUR) exchange rate is trapped in a narrow range this morning as markets await data from both the UK and the Eurozone.
At the time of writing, GBP/EUR is trading at around €1.2006, virtually unchanged from this morning’s opening levels.
Euro (EUR) to dip following economic sentiment index?
The euro (EUR) is struggling to garner investor attention this morning as markets await the publication of the Eurozone’s latest economic sentiment index.
The data is forecast to report a marginal downturn in this month’s reading, and is expected to fall from 96.6 to 96.5.
Should the data print as expected and continue to highlight overall economic pessimism within the bloc, this will likely see EUR exchange rates trend broadly lower moving into the second half of today’s Eupean session.
Pound (GBP) mixed ahead of CBI distributive trades
The pound (GBP) is trading in a wide range this morning, holding steady against the majority of its peers but faltering elsewhere, as markets await the publication of the Confederation of British Industry’s (CBI) latest distributive trades survey.
The index, that is used to measure sales compared to that of last year, is forecast to expand, with the survey expected to climb from -27 to -19 in September.
Should the data print as expected and confirm its highest reading in three months, Sterling could close the week firming against its peers.
Pound euro exchange rate forecast: German data in the spotlight
Looking ahead, the primary catalyst of movement for the pound euro exchange rate looking ahead to next week will likely be an influx of data from the Eurozone’s largest economy, scheduled for release on Monday.
Up first, Germany will publish its latest retail sales data for August, which could see EUR exchange rates begin the week on the back foot should the data reflect a downturn in consumer spending.
Following that, Germany will publish its latest inflation reading for September, which currently stands at 1.9%, just below the European Central Banks (ECB) 2% target.
Should the index cool any further and therefore ramp up ECB rate cut bets, the common currency will likely slump against its peers.
Turning to the pound, Monday will see the release of the UK’s final GDP reading for the second quarter of 2024.
If the data confirms the forecasted 0.6% growth level, this could provide support for GBP exchange rates at the start of the week.