Friday’s high: €1.1344
Friday’s low: €1.1267
Weak US Dollar Boosts Euro
A moderate rebound in French industrial production offered support to the Euro ahead of the weekend, indicating that the economy is still improving.
Demand for the single currency also picked up in response to the continued softening of the US Dollar, which slipped on disappointing consumer confidence data.
This failed to prevent the GBP/EUR exchange rate from continuing its bullish run, however, as Friday’s raft of UK data proved generally encouraging.
The Pound particularly benefitted from an unexpected uptick in the NIESR gross domestic product estimate for the three months to October, which clocked in at 0.5%.
This acceleration in growth bodes well for the fourth quarter GDP data, suggesting that the UK economy rebounded strongly from a weaker first half of 2017.
Coupled with stronger manufacturing and industrial production data this naturally saw the GBP/EUR exchange rate extending its gains further.
While the latest round of Brexit talks concluded without any material signs of progress the Pound was quick to shake off any lingering worries in the face of the day’s positive data.
Euro Outlook: Data-Light Day Sees Limited Momentum
It will be a quiet start to the week for both the Euro and the Pound, with no fresh data set for release on Monday.
Even so, if the political turmoil threatening to engulf Theresa May’s cabinet worsens this could knock the GBP/EUR exchange rate back from its recent highs.
Concerns over the stability of the minority Conservative government and a persistent lack of clarity over Brexit are also likely to limit the upside potential of Sterling.
Greater volatility can be expected tomorrow, though, as markets brace for the latest German GDP and UK consumer price index data.
So long as the German economy continues to build momentum, this should to offer the Euro a rallying point.
07:00 German Gross Domestic Product
09:30 UK Consumer Price Index
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