Pound euro exchange rate flat following German balance of trade
The pound euro (GBP/EUR) exchange rate is trapped in a narrow range this morning despite the publication of some forecast beating trade data from Germany.
At the time of writing, GBP/EUR is trading at around €1.1933, virtually unchanged from this morning’s opening levels.
Euro (EUR) rangebound despite upbeat German data
The euro (EUR) is trading sideways against the majority of its peers this morning following the publication of Germany’s latest balance of trade data.
August’s trade surplus came in higher than expected in the Eurozone’s largest economy, with the latest index rising from €16.9 billion to €22.5 billion, well ahead of a more modest €18.4 billion estimate.
As an export heavy industry, the latest exports data also painted a positive picture, with the index printing better than expected in August, dipping only marginally from 1.7% to 1.3%, rather than an expected -1% reading.
However, despite this upbeat data release and a cautious market mood, the safe-haven common currency is still struggling to rise against the majority of its counterparts.
Pound (GBP) muted amid lack of data
The pound (GBP) is struggling to garner investor attention this morning and remains mostly rangebound against the majority of its rivals as a lack of economic drivers continues to see GBP exchange rates struggle to find a clear trajectory.
However, Sterling is still managing to remain afloat against its safer counterparts despite a risk-off sentiment this morning.
As an increasingly risk-sensitive currency, downbeat trade usually pressures GBP. However, the pound is managing to hold steady against its peers steady despite these underwhelming factors.
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 looking at tomorrow will likely be the publication of Germany’s latest retail sales data.
Should the latest index report an uptick in consumer spending in August, this could lift EUR exchange rates in the aftermath of the release.
However, should the retail sales data report another negative reading, the common currency could dip as a result of increased European Central Bank (ECB) interest rate cut speculation.
Turning to the pound, a continued lack of UK macroeconomic data moving into Thursday will likely see GBP trade without a clear directional basis once again.
However, as an increasingly risk-sensitive currency, a move to upbeat trade could bolster GBP exchange rates against its safer rivals.
Similarly, should today’s anxious trade prevail, the British currency will likely trade on the back foot moving into the second half of the week.