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There was some surprising EUR/GBP strengthening yesterday as the economic sentiment figures from the German ZEW Survey came in lower than expected. Given that it is a survey of up to 300 experts from banks, insurance companies and financial departments from organisations it is seen as a key piece of data. One would have thought this could have causes a dip in the euro but it did not prove to be the case. However, it is worth noting that the UK’s inflation figure is currently 1.9% which makes a UK interest rate rise unlikely in the near future. As a result, sterling did slide a little.
Today there is no significant economic data due for release from the eurozone. Therefore, any significant shift in GBP/EUR is likely to come from UK data releases planned for later today. Obviously, if the data releases from the UK are better than expected then we can expect some strengthening but, on the other hand, if the figures fall significantly below what is being forecast we anticipate some further strengthening of the euro against the pound.
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