Last week’s high: €1.1195
Last week’s low: €1.0988
Pound Losses Out Amid Flash Crash
The Pound Euro (GBP/EUR) exchange rate traded in a wide range last week, largely due to a mini flash crash that rattled currency markets.
However the run up to the crash also saw volatility in the pairing, with thin trade over the New Year period leading to some notable swings in GBP/EUR, while markets appeared unimpressed by the UK’s latest manufacturing PMI.
Meanwhile, the Euro softened at the end of the week, with the Eurozone’s services PMI confirmed to have struck a four-year low in December while Eurozone inflation was shown to have slowed sharply over the same period.
EUR Outlook: Brexit Jitters to Return with a Vengeance?
Looking to the week ahead, with the majority of UK data focused at the tail end of the week, Brexit uncertainty may dominate movement in the GBP/EUR exchange rate through much of the session.
This may see Sterling struggle through the week amid speculation Theresa May’s Brexit deal will still be rejected by MPs this month despite the PM’s efforts to salvage it.
In terms of data, the release of the UK’s latest trade and GDP figures could offer some relief on Friday if November’s readings improve in line with expectations.
Meanwhile, there will be a slew of Eurozone data for EUR investors to pick over this week, with the bloc’s retail sales and unemployment figures potentially lifting the Euro in the first half of the session.
07:00 DE Factory Orders (Nov)
07:00 DE Construction PMI (Dec)
10:00 EU Retail Sales (Nov)
07:00 DE Industrial Production (Nov)
10:00 EU Business Confidence (Dec)
07:00 DE Trade Balance (Nov)
10:00 EU Unemployment Rate (Nov)
12:30 EU ECB Minutes
09:30 GB Trade Balance (Nov)
09:30 GB Industrial Production (Nov)
09:30 GB GDP (Nov)
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Foreign Exchange Manager