Pound euro exchange rate: GBP/EUR shrugs off weak UK GDP figures

Experts were quick to blame the slowdown on Brexit anxieties, along with global trade tensions and weakness in the Eurozone.

UK Manufacturing production for December also showed disappointing results, with production contracting by -2.1 percent, further diminishing sentiment in the UK economic outlook.

Earlier this morning Theresa May responded to opposition leader Jeremy Corbyn, who had written a letter setting out his demands for a Brexit deal. 

While Mrs May did not outright reject any of his five conditions, she replied: “I am not clear why you believe it would be preferable to seek a say in future EU trade deals rather than the ability to strike our own deals?”

Today the Eurogroup is meeting in Brussels to discuss the economic outlook for the Eurozone which, depending on their statements, could see the single currency make gains.

This morning revealed the latest Irish construction PMI, which printed at a rate of 54.6, indicating that the construction sector in Ireland is still expanding at a healthy clip.

At the same time, a raft of inflation data was released for the Scandinavian countries, with most showing robust levels of inflation, even though a slight downtrend is becoming discernible. 

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Swedish industrial production expanded by 1.8 percent in December, showing a return to expansion, although Sweden is not part of the Eurozone and its economic figure will not influence EUR.

As there is an absence of any UK or Eurozone economic data releases for the rest of today, the catalyst for movement is likely going to remain Brexit and the latest raft of UK statistics. 

Tomorrow, Bank of England Governor Mark Carney, will be making a speech, and this is likely to cause movement of the GBP/USD pairing, with the Pound seeing a rise if Dr Carney reiterates his hawkish message from last week. 

Source
Daily Express :: Finance Feed
Finance

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