The EURGBP exchange rate will react to economic data on Tuesday with UK employment and ZEW sentiment surveys for the euro.
EURGBP – Weekly Chart
The EUR v GBP exchange rate has still been holding an uptrend but has consolidated lately around the 0.88 level.
The UK currency has been under pressure lately due to slowing economic conditions. The country had been expected to post the worst GDP among the G7 nations. However, in its most recent reading, growth was slightly better than predicted.
The latest employment figures for the UK are expected to come in at 50k new jobs added, compared to last month’s 65k. The country is expected to see its unemployment rate remain at 3.7%.
EURGBP Forecast
Better news from the EY ITEM Club’s Spring forecast said house prices would drop 10 percent this year. However, according to the leading think tank, the country should avoid a recession. The upgraded forecast has suggested that the economy “seems to be turning a corner”. Predictions have changed from a -0.7% contraction in its January assessment to 0.2 percent growth.
The euro will also have data in the form of ZEW sentiment numbers for the eurozone and Germany. A 13 reading was seen in Germany last month, and 15.3 is expected this time as economists grow more confident in the economy. Germany posted sub-zero numbers over the previous year until a bounce in January.
