The Euro Pound (EUR/GBP) exchange rate edges up again today. This is despite some forecast-beating UK data supporting the Sterling (GBP).
The latest Eurozone PMIs are pointing towards an optimistic outlook for Eurozone recovery and the Euro (EUR) is benefitting from it. The EUR/GBP pair has spent most of the week trending with a downside bias, since opening this week at the level of 0.8658.
However, investors bought the Euro and pulled EUR/GBP to weekly highs. This was amid the European Central Bank (ECB) policy decision yesterday.
The EUR/GBP pair is currently trending near those highs in the region of 0.8689, not too far from last week’s monthly best level of 0.8717.
Next week’s UK economic calendar will likely be somewhat calmer, key Eurozone data could influence the Euro to Pound exchange rate. The data include growth rate stats.
After the gloomy months earlier in the year, investors are gradually having a more optimistic outlook for the Eurozone and the Euro.
The Eurozone’s COVID-19 vaccination rollout is likely to speed up this quarter. Analysts have been confident that the ECB could be pressured to react to stronger Eurozone data sometime in the summer.
For April, Eurozone PMI projections have been the latest sign that many things in the Eurozone are improving. The data beat forecasts in most major prints.
More and more support comes to the Euro helping the currency to hold its ground and begin to advance more.
Pound (GBP) Exchange Rates Struggle
For the past week, there has been a slightly weaker demand for the Pound. Investors were assessing mixed or unsurprising UK data and it was not enough to lead to higher demand.
The current UK retail sales and PMI projections stats did beat forecasts. However, it strengthened demand for the Sterling slightly at the end of the week.
Next week the publication of many key Eurozone ecostats will be due. It could continue to add to the gradually rising momentum behind the Euro’s strength.
Moreover, earlier next week, German confidence data will be published. This could also cause some movement.
Due in the second half of the week is more influential data including German and Eurozone growth rate, inflation, and unemployment figures.
Some analysts are predicting a stronger Pound. In the coming weeks, demand for the Euro could still pick up if data continues to impress though.
There’s plenty of data due next week, so there is plenty for the pair’s exchange rate investors to react to towards the end of the month.