GDP Data will be the key to GBPEUR Exchange Rate Movement Today (Tom Holian)

Brexit vote

Eurozone GDP data came out this morning for the year on year at -0.4% which was in line with expectation. This has done little to affect Sterling Euro exchange rates even though the data is low. GDP is a broad measure of Eurozone economic activity and health and a falling trend is likely going forward to be detrimental to the single currency.

Later today the NIESR releases its own GDP figures for the UK for December. Although the report is not official it does give a good indicator as to the ONS’s report for GDP. The expectation is for growth of 0.8% so anything above this afternoon could see Sterling break higher against the Euro providing some more excellent short term buying opportunities.

Monday and Tuesday next week is full of key announcements for the Eurozone and the UK with various inflation data due out. Inflation measures the cost of living and low inflation is often combated by cutting interest rates. With European interest rates currently at 0.25% and record lows it will be difficult for the ECB to cut rates so expect potential discussions on further monetary easing if this happens.

if you would like to save money when buying or selling Euros then please do not hesitate to contact me directly for a free quote Tom Holian [email protected]