GBP to EUR Forecast: What Could Happen to Pound to Euro Rates Next Week?

Pound to Euro Forecast: Will the Coronavirus Further Influence GBP/EUR Rates Ahead?

In a trading market which is dominated by the global news surrounded by the coronavirus, investors still turn to economic releases for pointers towards the economic performances of countries affected by the virus. The upcoming week is set to see the release of a number of significant reports for both the Eurozone and the UK economies. Consumer sentiment surveys, labour data and unemployment figures all top the list of releases. Any shifts in these figures will likely see swings in the GBP/EUR exchange rates which may open new opportunities for investors to benefit from weaker currency values. However, the market will continue to remain invested in the coronavirus outbreak and any developments, whether positive or negative, will likely overshadow the economic release for the week.

Eurozone Economic Releases Could Help Eur Pull Away Further

The euro has benefitted of late from the liquidation in stock market investments as investors repatriate their capital back into euros. The demand for euros has helped keep the single currency afloat, but following the ECB’s recent stimulus package being scrutinised and rejected by the market, the euro could be in trouble up ahead.

Looking ahead to next week, the Eurozone will see the release of the ZEW Survey Economic Sentiment on Tuesday, which measures the institutional investor sentiment, reflecting the difference between the share of investors that are optimistic and the share of analysts that are pessimistic. Wednesday will see the Consumer Price Index for February, markets are predicting a stagnation in the figures, which would do little to help the euro. Finally, Friday will see Germany’s producer price index for February.

UK Remains Under Pressure From Coronavirus and Unemployment Data Might Push GBP Further

For the UK, the GBP remains under pressure form the coronavirus as UK PM Boris Johnson announced on Thursday that the government has initiated the ‘delay’ phase of the coronavirus containment efforts. With fear rising in the UK and consumers stocking up on essentials in preparation of self-isolation, the pound looks to drop further. Next week, will see the UK’s ILO unemployment rate (3M) for January. The ILO Unemployment Rate released by the National Statistics is the number of unemployed workers divided by the total civilian labour force. It is a leading indicator for the UK Economy. If the rate is up, it indicates a lack of expansion within the UK labour market. As a result, a rise leads to weaken the UK economy. A rise has been predicted by the market and if this is the case, GBP will suffer.

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