The Euro and Pound are both high this week. It was after punctuating a week of poor Eurozone Eco stats and recent Brexit developments.
Meanwhile, the Euro to British Pound (EURGBP) exchange rate is on track to end the week from its opening levels as a result.
Next week may perhaps be another uneasy one for the European pair. It is due to the vital Eurozone data that is due next week.
Moreover, the formal 31st of October Brexit date is drawing ever closer.
After opening this week at the close of 0.8901, EUR/GBP for a short time fell. It was hitting the week’s low of 0.8845.
However, the Pound’s retrieval attempt was short-lived. EUR/GBP also recovered, striking a half month high of 0.8931 on Tuesday.
Since then, the EURGBP movement has weakened slightly. On Friday, at the time of writing, the EUR/GBP trended just below the week’s opening levels at 0.8895. It has happened amid significant Eurozone economic concerns.
EUR Exchange Rates Firm on Opposing Data Anticipation
In another place, most of this week’s Eurozone data is indicating that Germany’s economy was possible in recession.
Moreover, weak German manufacturing was pulling the rest of the bloc’s economic activity down with it.
Despite the matter, the Euro has seen more robust activity slightly towards the end of the week.
Meanwhile, the Euro often sees stronger demand. This stronger demand is when its main competing currencies are waning, especially the US Dollar (USD).
For additional information, the US Dollar also shares a negative correlation with the Euro.
Accordingly, the Pound and the US Dollar’s (USD) weak performance in current sessions has supported the Euro to rise amid a lack of other distinguished support.
On the flip side, the US Dollar has been weaker on insufficient US data, which has backed the Euro.
In the meantime, the Euro did find a little provision from today’s German construction PMI in September. The support has beat prospects and rose to slow development of 50.1.
Overall, according to Chris Williamson, Chief Business Economist at Markit, which compiled this week’s PMI data. Economists are not very optimistic regarding the Eurozone outlook.
- Trading Instrument