The Euro to GBP Exchange Rate was little changed on Monday as investors settled into a holding pattern before Wednesdays eagerly anticipated Eurozone inflation data.
The single currency received support after investors increased their bets that the inflation report would show that consumer prices across the region edged higher in April.
The consensus is that the inflation rate edged higher to 0.8%, an improvement on the 0.5% level recorded in the previous month. If the report does show an increase in inflation then pressure upon the European Central Bank to introduce additional monetary policy measures to support the economy will ease and would support the Euro.
Adding to the optimistic outlook for the single currency were comments made by ECB Governing council member Christian Noyer who said on Monday that whilst the strong Euro was weighing upon consumer prices the Eurozone was not at risk of slipping into deflation.
Also lending support to the single currency was the release of a better than expected consumer confidence report out of Italy. Istat’s confidence index jumped to 105.4 in April, its highest level since 2010. Economists had been expecting a reading of 105.4.
Against the US Dollar the Euro managed to advance to a two-week high.
The Euro was unable to make gains against the Pound as demand for Sterling continued to be underpinned by expectations that the Bank of England will hike interest rates in the first part of 2015. The UK currency also received support from expectations for acquisition and merger inflows after a major US drugs company confirmed that it wants to take over a British rival. The deal could be worth up to £60 billion.
Key Euro data due this week-
Tuesday 29th April – Eurozone business and consumer confidence reports
Eurozone industrial and Economic sentiment reports
German inflation rate YoY and MoM
Wednesday 30th April – German unemployment data
Italian unemployment data
Eurozone inflation rate
Friday 2nd May – Eurozone manufacturing PMI Final
Current Euro Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,US Dollar,1.3867 ,
Euro,,British Pound,0.8230 ,
Euro,,Australian Dollar,1.4930 ,
Euro,,Canadian Dollar,1.5277 ,
Pound Sterling,,Euro,1.2151 ,
US Dollar,,Euro,0.7211 ,