Euro (EUR) Unmoved by Disappointing Releases

January 9, 2025 - Written by John Cameron

STORY LINK Euro (EUR) Unmoved by Disappointing Releases

The Pound Euro exchange rate (GBP/EUR) was largely unchanged on Wednesday despite the release of several underwhelming data releases from within the Eurozone.

On Wednesday, the Euro (EUR) maintained its stability against most of its major counterparts, even as a series of disappointing economic data points emerged.

Germany's factory orders and retail sales figures fell short of expectations, and this was compounded by weaker-than-anticipated economic sentiment and industrial sentiment indices.

The lone bright spot was the Eurozone's Producer Price Index (PPI), which slightly exceeded forecasts and indicated a rebound in November.

Despite the numerous underwhelming data releases, the Euro managed to hold its ground against nearly all of its trading partners.

On Wednesday, the Pound (GBP) struggled to capture investor interest and saw a slight decline against most of its major trading partners.

The downturn was primarily due to the lack of UK economic data releases, a trend that had persisted from the sparse economic calendars of the previous two days.

Consequently, Sterling weakened against the majority of its peers, lacking a clear direction.

GBP/EUR Forecast: Eurozone Data to Remain in Spotlight

Looking ahead to Thursday, the primary driver of movement for the Pound Euro exchange rate will likely continue to be economic releases from the Eurozone.

Germany, the bloc's largest economy, will unveil its latest balance of trade data, which could introduce volatility into the common currency during the first half of Thursday's European session.

Following that, the Eurozone will release its November retail sales data, which could provide some modest support to EUR exchange rates if it confirms an expected rebound.

In the UK, the economic calendar for Thursday and Friday will remain light, with no significant data releases on the horizon.

This lack of new domestic catalysts is likely to leave the Pound vulnerable to external factors and overall market sentiment once again.

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TAGS: Euro Forecasts