The Pound to Euro (GBP/EUR) exchange rate could be in for some significant fluctuations this week amid political developments, central bank decisions, and economic data.
Monday will begin with the UK Rightmove House Prices data for June. The previous reading only came in at 0.1%, and given Brexit uncertainty, a large jump is unlikely, but a positive number could help to buoy the Pound.
ZEW Surveys and Inflation Data in Focus
Tuesday will begin with the Eurozone’s final inflation reading for May, as well as Eurozone and German ZEW Surveys detailing economic sentiment which could be influential for the Euro exchange rate.
Wednesday will be an interesting day for the UK with the UK Consumer Price Index (CPI) for May. A rise in inflation could put some more pressure on the Bank of England’s (BoE) Monetary Policy Committee (MPC) to reconsider its stance on monetary policy. Additionally, the UK House Price Index for April will be published; the March reading resided at 1.4%.
Bank of England (BoE) Interest Rate Decision in Focus
Following on from the UK inflation rate reading, the BoE will announce its latest interest rate decision on Thursday after a two-day rate-setting meeting. While no movement is expected, speculation surrounding future rates could move the Pound. Additionally, the Eurozone Consumer Confidence stat will also be out on Thursday. The May print resided in contraction territory at -6.5; any improvement could boost the Euro.
Friday will close the week with the latest German, French, and Eurozone Manufacturing, Services, and Composite Purchasing Managers’ Indexes (PMI). As the largest economy in the Eurozone, Germany’s readings will be closely watched, as well as the Eurozone as a whole.
At the end of last week, the Pound to Euro (GBP/EUR) exchange rate was trading at 1.1233.