ExchangeRates.org.uk – The Pound Euro () exchange rate traded in a narrow range on Monday following the publication of Germany’s latest .
At the time of writing, GBP/EUR traded at around €1.1967, virtually unchanged from Monday’s opening rate.
The Euro (EUR) held steady against the majority of its peers on Monday following the publication of Germany’s latest inflation reading. The latest inflation print came in at 1.6% rather than a more modest 1.9% expectation in September, printing further below the (ECB)’s 2% target.
The data continued to highlight cooling inflation within the bloc’s largest economy following Spain and France’s own cooler-than-expected inflation prints on Friday, however, failed to undermine EUR exchange rates in the process as the common currency was marginally supported by a weakening (USD) on the back of the currency’s negative correlation.
The Pound (GBP) managed to stay afloat against the majority of its peers on Monday despite the publication of some below forecast data for the second quarter of 2024. The Office for National Statistics (ONS) revealed that growth declined more than the original estimate had anticipated over the three months from April to June, and was reduced from 0.6% to 0.5%. While the GDP reading cooled more than forecast, it still indicated moderate growth and a solid recovery from the UK’s mild recession at the end of last year, which saw GBP exchange rates mostly unchanged in the wake of the release.
Looking ahead, the primary catalyst of movement for the Pound Euro exchange rate looking ahead to Tuesday will likely be the publication of the Eurozone’s own consumer price index. As this month’s index is forecast to report that headline inflation in the bloc has also cooled to 1.9%, just below the ECB’s target, EUR exchange rates will likely be undermined by an increase in ECB rate cut bets.
Turning to the Pound, the UK is set to unveil its latest for the month of August. While economists expect a slight decline in the index, it is projected to remain above the critical threshold of 50, indicating continued expansion in the manufacturing sector, which could provide GBP with a modest boost.
This content was originally published on ExchangeRates.org.uk
