Another quiet day yesterday saw the pound flicker in a narrow trading range, continuing where it left off from the tail end of last week. As mentioned last week, there was little in the way of data releases specifically for the UK, leaving little for pound traders to be excited about. The same rhetoric is followed for the first half of this week too. Meandering sideways on the charts with no purpose since topping 1.18, GBPEUR has had little momentum to see a significant shift in sentiment to trading. The same can be said for EURUSD, which has seen price deviate under 0.5% since Friday opening.
Eurozone GDP results are expected this morning, which will see the continent release figures for all goods and services produced for the second quarter of the year. The yearly comparison will be monitored for signs of recovery following the Covid pandemic, where Q2 last year saw the pandemic reach Europe. Since then of course, we have seen the vaccine rollout, which was slow to get off the ground but soon caught up with others.
As mentioned by James yesterday, the ECB are due to release their interest rate decision at lunch time Thursday. Whilst the rate is rumoured to remain flat, the markets will take a deep dive into the following press release. Within that release, analysts will be looking for hints as to where the central bank believe the economy to be heading with signs of if and when the interest rate will be changed.
Have a great day.
Jack Nicholls, Senior Relationship Manager.
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