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

The pound euro (GBP/EUR) exchange rate is falling, snapping a two-day winning run.

The pound is falling after the Chancellor’s Budget, which revealed few surprises. The 2p National Insurance tax cut was pre-revealed.

The OBR forecast inflation will fall below 2% in April. However, the Chancellor failed to say what would happen to inflation after that.

The euro is rising after eurozone retail sales rose 0.1% in January after falling 1.1% in December. The data boosted optimism that the recovery in consumer confidence could fuel a broader pick-up in the economy.

The ECB interest rate decision is due tomorrow, and no change in rates is expected.