Pound euro exchange rate flat following economic data
The pound euro (GBP/EUR) exchange rate is trapped in a narrow range this morning following the publication of the UK’s latest GfK consumer confidence index and Germany’s latest IFO business climate survey.
At the time of writing, GBP/EUR is trading at around €1.1979, virtually unchanged from this morning’s opening levels.
Euro (EUR) mixed following forecast beating data
The euro (EUR) is managing to hold steady against the majority of its peers this morning following the publication of some high impact economic data from the Eurozone’s largest economy.
Germany’s latest IFO business climate indicator came in above forecasts this month, with the index climbing from last month’s eighth month low of 85.4 up to 86.5, well ahead of a more modest 85.6 expectation.
However, despite this better-than-expected data release, the single currency is only marginally firming against its riskier counterparts today, supported by this morning’s market pessimism and the euro’s safe-haven status.
Pound (GBP) undermined by consumer confidence
The pound (GBP) is struggling to garner investor attention this morning following the publication of GfK’s latest consumer confidence index.
Last month’s consumer confidence data fell from a previous reading of -20 down to -21 and marked the lowest reading this year.
This was primarily put down to household concerns over the UK’s upcoming Autumn Budget next week which is projected to include a number of tax cuts.
Neil Bellamy, Consumer Insights Director at GfK, explains:
‘Consumer confidence fell one point this month to -21, taking the score back down to the level last seen in March this year.
As the Budget statement looms, consumers are in a despondent mood despite a fall in the headline rate of inflation. This month’s Consumer Confidence Barometer paints a picture of people holding their breath to see what’s in store for them on 30th October.’
Pound euro exchange rate forecast: UK and German data to remain in the spotlight?
Looking ahead, the primary catalyst of movement for the pound euro exchange rate looking ahead to the start of next week will likely continue to be economic data from both the UK and Germany.
On Monday, the UK will release its latest CBI distributive trades survey which could support the pound at the start of the week should the index report another rise in this month’s reading.
Turning to the euro, Germany is expected to publish its latest GfK consumer confidence index for the month ahead.
The data could serve to undermine the single currency should the latest sentiment barometer report another lacklustre reading for November.