GBP/EUR Rates Remain Flat Despite Positive Data for UK Economy (Matthew Vassallo)

GBP EUR Looks to Employment Figures for Support

GBP/EUR levels have remained flat during Monday’s trading despite positive PMI Construction data for the UK. This morning release was better than expected and gave the Pound a boost initially, before the EUR regained ground during afternoon trading. There was also a report released today which indicated the UK economy was growing faster than any other Western nation, news that will surely fill prospective investors with confidence. I would have thought the Pound would be well supported following the release of this information but it may be that the recent spike is coming to an end, with pressure now being put back on 1.18 by the EUR, moving away from the recent high.

I’m expecting volatility on GBP/EUR for the rest of the week as we have a lot of economic data out for the UK and the Eurozone. Perhaps the most important releases will come on Thursday, when we have the Bank of England (BoE) and European Central Bank (ECB) interest rate decisions and monetary policy statements. Any change in interest rates, or a hint that there will be future rate cuts could cause GBP/EUR levels to spike. Similarly any indication that there will be a further injection of Quantitative Easing (QE), will result in additional market volatility.

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