⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

Pound Euro Exchange Rate Muted following Upbeat German Data

Published 09/10/2024, 08:00
Updated 09/10/2024, 08:40
Pound Euro Exchange Rate Muted following Upbeat German Data
EUR/GBP
-

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.

This content was originally published on ExchangeRates.org.uk

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.