• IMF updated UK growth forecast to 7%
  • Key economic data from EU and the UK ahead
  • GBP rallies to multi-month high against the EUR

The Pound Euro (GBP/EUR) exchange rate is trading off a multi-month high finding moderate selling at the resistance level of 1.1765. The GBP to EUR pair was seen trading on Wednesday within a trading range of 1.1765 and 1.1733, settling down -0.06% to 1.1738. At 07:10 UTC, GBP/EUR trades up +0.10% at 1.1750.

Overall, the GBP to EUR cross continues to be supported as the British Pound is outperforming most of its counterparts.

Elsewhere, the International Monetary Fund (IMF) raises the estimated for UK economic growth to 7% in 2021 and by 4.8% next year. The IMF’s updated forecast represents the fastest growth rate among G7 countries. This along with improved risk sentiment in global markets supported buoy currencies.

Key Economic Data Ahead

Early European session will update investors on the unemployment rate in Germany and the Euro area consumer confidence. Consumer confidence rose to -4.4 in July and the economists polled by Reuters expect a flat reading. Germany unemployment rate is expected to improve to 5.8% in July down from 5.9%.

Elsewhere, net consumer credit in the UK is expected to grow to GBP 600 million in June up from GBP 280 million in May. The reopening of the UK economy and the lockdown restriction lift is expected to drive higher consumer spending.