ExchangeRates.org.uk - The Euro (EUR) edged higher against most of its counterparts on Tuesday, buoyed by Germany's latest industrial production figures. The index surpassed market expectations in August, climbing from a previous -2.9% to a positive 2.9%, easily outpacing the predicted 0.8% figure. This stronger-than-expected reading initially boosted the euro's appeal, however, despite the positive data release, the currency struggled to extend its gains following the release. The Pound (GBP) remained stable against most of its counterparts on Tuesday despite the absence of major economic catalysts. However, providing some modest backing for Sterling on Tuesday was the release of the UK's latest grocery inflation figures from market research firm Kantar, which showed that grocery inflation ticked up in September, rising from 1.7% to 2%. However, the prevailing risk-off market sentiment capped further gains for the increasingly risk-sensitive Pound, making it difficult for the currency to advance.
GBP/EUR Forecast: ECB Central Bank Speeches in the Spotlight?
Looking ahead, the primary catalyst of movement for the Pound Euro exchange looking ahead to Wednesday will likely be several speeches from European Central Bank (ECB) officials. If the European Central Bank adopts a dovish tone, the Euro is likely to weaken due to heightened expectations of interest rate cuts. Equally, if ECB members challenge the notion of imminent rate cuts, the Euro could end the week on a strong note. Looking at the Pound, there is a scarcity of UK data for most of the week, which may result in Sterling trading without a clear direction and largely influenced by broader market sentiment. If markets shift towards a more optimistic trade, Sterling could still see an improvement in sentiment by the week's end.
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