Pound euro exchange rate flat amid minimal data
The pound euro (GBP/EUR) exchange rate is trapped in a narrow range this morning as a data-light morning sees investors await the latest Bank of England (BoE) speech from central bank member Swati Dhingra.
At the time of writing, GBP/EUR is trading at around €1.1952, virtually unchanged from this morning’s opening levels.
Pound (GBP) quiet ahead of BoE speech
The pound (GBP) is trading mostly flat this morning, although is managing to firm against its riskier counterparts, as a lack of UK data sees Sterling struggling to find a clear trajectory.
GBP investors may also be reluctant to place any overly aggressive bets on the pound ahead of an upcoming speech from the Bank of England.
Scheduled for release later this morning, BoE member Swati Dhingra is expected to deliver a speech which could buoy GBP exchange rates later today should the dovish-leaning central bank member hint at a gradual reduction in UK monetary policy.
Euro (EUR) subdued amid absence of data
The euro (EUR) is also trending sideways against the majority of its peers this morning but has also managed to gain ground against its risk-sensitive rivals despite a lack of economic data releases from within the Eurozone this morning.
Further muting EUR exchange rates at the start of this week is mounting speculation over the European Central Bank’s (ECB) upcoming interest rate decision.
Scheduled for publication in the second half of the week, markets are largely pricing in another ECB interest rate cut at this month’s meeting.
This could severely undermine the common currency this week which has left the euro largely flat ahead of the upcoming decision.
Pound euro exchange rate forecast: high-impact data to infuse volatility?
Looking ahead, the primary catalyst for movement for the pound euro exchange rate this week will undoubtedly be the European Central Bank’s upcoming interest rate decision, scheduled for Thursday.
However, before that, the UK and the Eurozone will both release significant data releases which could impact the GBP/EUR exchange rate before the ECB’s rate decision.
On Tuesday, the UK will publish its latest labour data, which could serve to undermine Sterling should the latest unemployment rate differ from expectations, or should the latest average earnings (excluding bonus) index confirm a fall in UK regular pay.
Turning to the euro, Tuesday will see the publication of Germany’s all-important ZEW economic sentiment index.
This could hobble the common currency in the wake of the release should economic sentiment remain near a one-year low in the Bloc’s largest economy.