EUR/GBP Exchange Rate Stable Following Upswing in Eurozone Sentiment
The Euro Pound (EUR/GBP) exchange rate is trading in a narrow range this morning as markets digest the Eurozone’s latest ZEW sentiment survey.
At the time of writing, the EUR/GBP exchange rate is virtually unchanged this morning, leaving the pairing trading at £0.86.
Euro (EUR) Exchange Rates Steady as Eurozone Sentiment Beats Expectations
The Euro (EUR) is rangebound against the Pound (GBP) and the majority of its other peers this morning following the publication of the Eurozone’s latest economic sentiment figures.
The ZEW Indicator of Economic Sentiment index was shown to have rebounded sharply this month, leaping from -2.5 to 4.5, easily beating forecasts of a more modest reading of 1.2 and rising to its best levels since March 2018.
Commenting on the survey ZEW President Professor Achim Wambach said:
‘The slight improvement recorded by the ZEW Indicator of Economic Sentiment is largely based on the hope that the global economic environment will develop less poorly than previously assumed.
‘The postponement of the Brexit deadline may also have contributed to buoy the economic outlook. By contrast, the latest figures regarding incoming orders and industrial production in the German industry point to a rather weak economic development.’
However while sentiment may be on the rise it remains to be seen whether this will be backed up by data, with recent economic releases still indicating that growth in the bloc remains subdued.
Pound Sterling (GBP) Exchange Rates Stable as UK Unemployment Holds at 44-Year Low
At the same time the Pound (GBP) is holding its ground this morning following the publication of the UK’s latest jobs report.
According to data published by the Office for National Statistics (ONS), UK unemployment held at a 44-year low of 3.9% in February as the UK’s unemployment rate struck a record high of 76.1%.
This was accompanied by the UK’s latest wage growth figures, which held at a decade high of 3.5% after being revised up in January.
However with the figures printing in line with expectations it failed to spark any real movement in Sterling amid lingering concerns over Brexit.
EUR/GBP Exchange Rate Forecast: Rising Inflation to Lift Sterling Tomorrow?
Looking ahead, the Euro Pound (EUR/GBP) exchange rate may come under pressure on Wednesday following the publication of the UK’s Consumer Price Index.
Economists forecast the CPI figures will reveal inflation ticked up from 1.9% to 2% last month, placing it back within the Bank of England’s (BoE) target range and potentially bolstering Sterling on hopes the BoE could still raise interest rates this year, so long as Brexit is resolved in a timely manner.
Meanwhile, EUR investors will be focused on the latter half of the week and the release of the Eurozone’s latest PMI figures.
This could see the Euro struggle on Thursday if growth in the bloc’s private sector remain subdued in April as it would indicate that the slowdown in the Eurozone may extend past the first quarter.