The Euro was little changed against the Pound on Wednesday as UK GDP data matched economist forecasts, losses were restrained for the single currency due to the publication of a report which showed that consumer confidence in Germany climbed to a seven-year high.
Early in the session the Euro found support against a number of its most traded peers. According to the GfK consumer climate indicator consumer confidence climbed to 8.5 points for next month. The index uses data from the current month to project a sentiment indicator for the coming month. The figure is above February’s upwardly revised reading of 8.3 and above economists’ expectations of 8.2. The figure was the highest reading recorded for seven years.
The data added to the positivity surrounding the German economy. A report released on Tuesday showed that the nation’s economy expanded by 0.4% in the fourth quarter of 2013 and business sentiment climbed to a 2.5 year high.
As the morning wore on the Pound found support after the Office for National Statistics released a report which showed that UK gross domestic product increased by 0.7% between the third and fourth quarters of 2013. The figure matched economist forecasts and was unrevised from the preliminary estimate for GDP published at the end of January.
“We would need a massive economic disappointment or strong dovish signal from the Bank of England to really bring down Sterling, so any dips will be bought into. The fundamentals remain supportive,” said the head of G10 currency strategy at Citigroup Inc.
The Euro could find support on Thursday due to a plethora of data releases for Eurozone member nations. The most important of which will be Spanish GDP, German unemployment, Italian and Eurozone business confidence and Eurozone economic sentiment.
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,1.3736 ,
Euro,,British Pound,0.8228 ,
Euro,,Australian Dollar,1.5256 ,
Euro,,Canadian Dollar,1.5220 ,