Euro Strengthens Against The Pound and US Dollar Ahead of GDP Growth Data

February 24, 2012 - Written by Tim Boyer

STORY LINK Euro Strengthens Against The Pound and US Dollar Ahead of GDP Growth Data

The Pound Euro exchange rate (GBP EUR) is 1.1780, the Pound to US Dollar exchange rate (GBP USD) is 1.5773.

Yesterday’s session in the currency markets saw a significant number of data releases across the globe, none of which were classed as ‘tier one’. Today’s session is likely to make up for this, as it is peppered with closely-watched figures.

German GDP Growth numbers for Q4 have already been released. The finalised figures showed that, as expected, activity in Europe’s powerhouse economy had expanded by a healthy 1.5% in the last three months of 2011.

Provisional UK GDP growth numbers for Q4 2011 are penned in for release at 0930hrs GMT today. These numbers are harder to predict, as they are an initial print, however analysts are expecting the data to show a quarter-on-quarter dip of 0.2% in British growth.

Elsewhere, this afternoon brings the release of this month’s closely-watched Michigan Confidence survey in the US. Analysts are anticipating that the key release will show a slight improvement in US consumer sentiment, from 72.5 in January to 72.8 this month. Anything other than an uptick could cause some downside pressure on the Greenback ahead of tonight’s market close.

The major move in the markets yesterday came from the euro, which was well-supported against both the Pound and the US Dollar. This saw the GBP EUR exchange rate plunge to its lowest level since the 12th December in early trading today. The EUR USD exchange rate showed a similar movement, seeing the pair make a renewed run at the 1.3400 level this morning.

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TAGS: Daily Currency Updates Euro Forecasts Euro Pound Forecasts Pound Do Forecasts