ExchangeRates.org.uk - The Euro (EUR) managed to hold steady against the majority of its peers on Thursday despite the European Central Bank announcing its fourth interest rate cut of the year, reducing the interest rate from 3.25% to 3%.Following the widely expected cut, ECB’s President Christine Lagarde also softened her language in her accompanying press conference while also focusing on the overall weakness of the Eurozone’s economy.
However, despite the ECB’s decision to cut rates and the central bank’s dovish tone, the common currency managed to stay afloat, even rising against several of its peers like the Pound (GBP).
On Thursday, the Pound struggled to attract attention from investors, and edged lower against the majority of its peers, as a continued absence of economic data this week left GBP exchange rates without a clear direction.
Investors may have been particularly cautious towards the Pound ahead of the release of important economic data on Friday.
The UK’s most recent GDP figures are scheduled to be published on Friday, potentially causing significant fluctuations in the Pound as the week draws to a close.
GBP/EUR Forecast: UK and Eurozone Data to Drive Movement
Looking ahead, the primary driver of movement for the Pound Euro exchange rate looking at Friday will likely be the publication of some high impact data from both the UK and within the Eurozone.
Looking at the Pound, the UK will release its latest GDP data for October.
If the GDP figures align with expectations and indicate a recovery from the previous -0.1% to an anticipated 0.1%, GBP exchange rates could see a boost by the end of the week.
Turning to the Euro, Germany will release its latest balance of trade data while the Eurozone will release its latest industrial production data for October, which could also infuse volatility into EUR exchange rates should either index miss market expectations.
This content was originally published on ExchangeRates.org.uk