GBP/EUR: Will Eurozone GDP Data Pull Euro Lower?

The pound euro (GBP/EUR) exchange is edging lower after strong gains yesterday.

The pound rallied after UK wages grew at 5.7% YoY, adding to inflationary pressures.

Attention is now on inflation data, which is expected to rise to 10.7% YoY in October a fresh 40 year high. Hot inflation will pile pressure on the BoE to keep hiking interest rates.

The euro is rising after the US considers that Russia was unlikely to have sent the missile which landed in Poland.

German ZEW economic sentiment was ahead of forecasts at -30, up from -59.2.

There is no high impacting data today. ECB’s Lagarde is to speak.