Pound to Euro End of Week Forecast: GBP Rangebound vs EUR amid Limited Data

November 14, 2024 - Written by John Cameron

STORY LINK Pound to Euro End of Week Forecast: GBP Rangebound vs EUR amid Limited Data

The Pound to Euro (GBP/EUR) exchange rate was largely unmoved on Wednesday morning, with a lack of significant data releases from either the UK or Eurozone leaving the pairing trapped in a narrow range.

The Euro (EUR) faced headwinds on Wednesday as market anxiety over future US trade policy continued to weigh on the single currency.

Following Donald Trump’s recent election win, fears of his tariff plans have led to concerns about the impact on the Eurozone’s economy.

Investors worry that a potential trade confrontation between the US and EU could further hinder growth in the already fragile Eurozone economy.

This has sparked speculation that the European Central Bank (ECB) may need to consider additional interest rate cuts to support the Eurozone.

The Euro also continued to be pressured by political uncertainty stemming from the recent collapse of Germany’s coalition government.

The Pound (GBP) remained flat at the start of Wednesday’s European session, with investors awaiting comments from Bank of England (BoE) policymaker Catherine Mann.

As the only member of the BoE’s Monetary Policy Committee to oppose the recent rate cut, Mann’s remarks may influence GBP sentiment if she reaffirms her concerns over inflation.

Should she reiterate her cautious stance on monetary easing, the Pound may see a slight lift.

However, if Mann avoids discussing monetary policy, Sterling may continue to trade sideways.

GBP/EUR Forecast: Dovish ECB Minutes to Weigh on the Euro?

Later in the week, the Pound to Euro exchange rate could see movement following the release of minutes from the ECB’s recent policy meeting.

If the minutes hint that policymakers are considering further rate cuts in December, the Euro could weaken.

Focus will then shift to the UK’s upcoming GDP figures, which are expected to reveal a further slowdown in growth for the third quarter, potentially stoking expectations for a BoE rate cut and pressuring the Pound.

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TAGS: Pound Euro Forecasts