Although today’s consumer confidence report for the Eurozone could still have an impact on the Euro, the Euro to Pound (EUR/GBP) exchange rate is currently trading in the region of a seven-week low thanks to the UK’s upbeat economic outlook.
Economic data for Britain is lacking today, but last week’s impressive employment figures indicate that the nation’s economy is still strengthening at a more rapid pace than many of its G10 nation rivals.
Next week’s UK growth data is also forecast to show that the nation’s economy expanded by 0.7 per cent in the first three months of 2014.
Meanwhile, a Eurozone report showed that the pace of construction output growth in the 18-nation currency bloc slowed markedly in February.
Eurozone construction output jumped by 1.6 per cent in January but grew by just 0.1 per cent in February.
A drop in building construction was largely attributed to the decline.
Year-on-year construction output was up 6.7 per cent in February.
Later today the Eurozone’s consumer sentiment index is forecast to hold at -9.3 in April.
Bloomberg News quoted forex strategist Gavin Friend as observing; ‘The Pound will trade higher versus the Euro over time. The strength of the UK data is driving this. We think we’re on for something like 0.9 per cent growth in the first quarter, well above the UK’s peer countries and that will just keep the Pound supported.’
As the UK’s unexpectedly strong employment data was published after the last Bank of England policy meeting it is likely that the minutes from said meeting will support the case for leaving policy accommodative for the foreseeable future. However, any impact from these minutes could be reduced due to last Wednesday’s jobs report.
The minutes are due for release tomorrow at 9:30 GMT.
UK public finance and retail sales data will also be of interest as the week continues.
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,US Dollar,1.3816 ,
Euro,,New Zealand Dollar,1.6076,