Pound-Euro Exchange Rate Unmoved following German and UK Data

February 26, 2025 - Written by Frank Davies

STORY LINK Pound-Euro Exchange Rate Unmoved following German and UK Data

The Pound Euro exchange rate traded flat on Tuesday following the publication of some data from both the Eurozone and the UK. At the time of writing, the GBP/EUR was trading at around €1.2024, virtually unchanged from Tuesday’s opening levels.

On Tuesday, the Euro (EUR) traded mostly flat against most of its peers following the release of Germany's latest GDP figures.

The final GDP reading for Q4 of 2024 matched market expectations, confirming a decline from 0.1% to -0.2% in the Eurozone's largest economy.

Despite the negative figure, the data aligned with forecasts and did not significantly affect the Euro's performance after the release.

On Tuesday, the Pound (GBP) remained largely unchanged against most of its counterparts following the release of some mid-tier UK data.

The latest CBI distributive trades survey showed another decline this month, dropping from -24 to -25.

Although the data improved slightly from -24 to -23 instead of dropping further to -25, the index still indicated the fifth consecutive month of declining retail sales volumes.

This lack of positive momentum left GBP exchange rates wavering against its rivals.

As we look ahead to Wednesday, the Pound Euro exchange rate will likely be influenced primarily by another data release from the Eurozone.

Germany is scheduled to publish its crucial GfK consumer confidence index for the upcoming month.

While the data is expected to show a slight improvement in consumer sentiment, it is still anticipated to remain in pessimistic territory.

If the data surpasses market expectations, it could give a boost to EUR exchange rates as we progress into mid-week trading.

On the Pound's side, the UK will not have any significant data releases on Wednesday's calendar. As a result, GBP exchange rates may
trade without a clear direction.

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TAGS: Pound Euro Forecasts