ExchangeRates.org.uk - At the time of writing, GBP/EUR traded at €1.2010, virtually unchanged from the session’s opening levels.The Pound (GBP) was muted on Thursday as a lack of market-moving UK data kept the currency subdued.
The only data released was a mid-tier consumer confidence survey from the British Retail Consortium (BRC), which showed a slightly more pessimistic outlook from UK consumers in November.
However, this negative data was largely offset by a positive market mood, which supported the increasingly risk-sensitive Pound against its safe-haven counterparts.
Meanwhile, the Euro (EUR) was also rather quiet on Thursday, despite some positive Eurozone data.
The bloc’s economic sentiment indicator unexpectedly improved in November, beating expectations that it would slip to a one-year low.
However, any upside stemming from the data was seemingly offset by a cheery market mood – which pressured the safer Euro – and the currency’s negative correlation with a rising US Dollar (USD).
Furthermore, EUR investors were reluctant to place aggressive bets on the currency ahead of Friday’s Eurozone consumer price index.
GBP/EUR Exchange Rate Forecast: Rising Eurozone Inflation to Boost the Euro?
Looking forward, the preliminary Eurozone consumer price index for November is the focus on Friday.
City economists expect headline inflation in the bloc to have accelerated this month, up from 2% to 2.3%.
Core inflation is also forecast to rise, from 2.7% to 2.8%.
If the CPI figures print as expected, markets may trim bets on further European Central Bank (ECB) interest rate cuts over the coming months.
This would likely see the Euro strengthen.
Any surprise results are likely to cause more significant movement.
If the inflation data under- or overshoots expectations, then the Euro could stumble or soar, respectively.
Meanwhile, market-moving UK economic data is thin on the ground, potentially leaving the Pound muted.
This content was originally published on ExchangeRates.org.uk