GBP/EUR: Pound Steady vs. Euro As Angela Merkel Steps Down

The Pound Euro (GBP/EUR) exchange rate is rebounding after closing -0.15% on Wednesday.

The Pound came under pressure on Brexit headlines, talk of triggering article 16 and deteriorating UK – EU relations.

Today the pound is rising ahead of the Q3 UK GDP release which is expected to show a deceleration in growth to 1.5%, down from 5.5% in the second quarter. Supply chain disruptions, labour market shortages and rising energy prices are to blame.

The Euro rose as German inflation hit 4.5% in October. Consumer prices are expected to keep rising until next year. However, a strong USD is dragging on the common currency.

Today the Eurozone economic calendar is relatively quiet with just ECB macro projections to focus on.