- Pound (GBP) awaits GDP data in an otherwise data
- The growth outlook remains weak
- Euro (EUR) awaits inflation data
- German inflation cooled by more than expected
The Pound Euro (GBP/EUR) exchange rate is rising after small losses in the previous session. The pair rose fell -0.04% in the previous session, settling on Thursday at €1.1547 and trading in a range between €1.1544 – €1.1589. At 06:35 UTC, GBP/EUR trades +0.5% at €1.1556
The pound held steady against the euro in the previous session amid a lack of fresh fundamental drivers. The UK economic calendar was quiet, and there were no Bank of England policymakers speaking.
The only data release was figures from Zoopla showing weakness in the housing market as house prices fell year on year for the first time since June 2012. Prices have fallen 0.5% annually, although this figure is much greater when inflation is taken into account.
Today, the economic calendar is busier with attention on UK Q2 GDP data which is expected to confirm that the UK economy grew 0.2% quarter on quarter in the April to June quarter.
Investors would also be watching Nationwide house price data which is expected to show how prices fell -5.8% year on year in September. When house prices start to fall, consumer confidence can also take a turn for the worse.
The euro was flat in the previous session as investors digested the latest German inflation data as well as eurozone consumer confidence figures. Consumer morale deteriorated further in September, dropping to -17.8 from -16, marking the fifth straight month of declines.
Meanwhile, German inflation also cooled by more than expected to 4.5%, down from 6.1% in August, which had been expecting a decline to 4.6%. The data comes ahead of eurozone inflation data due today, which is also expected to cool considerably to 4.5%, down from 5.2%. Cooler inflation could reinforce bets that the ECB has ended its rate hiking cycle, which could pressurise the euro lower.