Pound Euro Exchange Rate News: GBP/EUR Wobbles ahead of Busy Week

October 15, 2024 - Written by John Cameron

STORY LINK Pound Euro Exchange Rate News: GBP/EUR Wobbles ahead of Busy Week

The Pound Euro (GBP/EUR) exchange rate wavered on Monday, despite the start of the UK’s International Investment Summit, as high-impact events later in the week loomed over the currency pairing.

At the time of writing, GBP/EUR traded at €1.1949, having fluctuated in a tight range since the start of the week’s opened.

The British Pound (GBP) had a mixed performance on Monday, even as the UK's International Investment Summit began in London.

The event, organised by the Labour government to attract global investors ahead of the upcoming Autumn Budget, initially received a warm welcome from major business leaders, including top executives from Goldman Sachs and JP Morgan.

Prime Minister Keir Starmer opened the summit with a speech pledging to cut red tape to stimulate investment.

However, the Pound struggled to make gains against the Euro (EUR). GBP investors appeared cautious about making moves ahead of forthcoming UK data releases. In addition, concerns about the upcoming Labour budget capped the currency's potential.

Meanwhile, the Euro remained subdued on Monday as EUR investors awaited the European Central Bank’s (ECB) impending interest rate decision.

Markets are anticipating another rate cut from the ECB on Thursday, which lead investors to be cautious about adjusting their positions in the common currency on Monday.

Additionally, an uncertain market sentiment kept the safer Euro fluctuating within a narrow range against the Pound.

The upcoming week is packed with significant UK data releases, kicking off with the latest labour market report scheduled for Tuesday. Experts predict that British unemployment remained unchanged over the three months leading to August, while wage growth slowed down.

If the data meets these expectations, the slight decrease in wage growth could put some pressure on the Pound, although losses might be limited.

However, any surprises in the data could trigger more pronounced movements in the GBP/EUR exchange rate. Indications of a slowing labour market might fuel Bank of England (BoE) rate cut bets, potentially weakening the Pound. Conversely, stronger wage figures could boost Sterling.

For the Euro, Tuesday's spotlight is on Germany's latest ZEW economic sentiment index. Following last month's unexpectedly sharp decline in investor morale in the Eurozone's largest economy, another weak reading could put downward pressure on the common currency.

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TAGS: Pound Euro Forecasts