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The Euro Pound (EUR/GBP) exchange rate is steady this morning after the latest inflation data from Germany met forecasts.
The Pound has also found itself supported following the GDP data from the UK during Q1, with the EUR/GBP pairing currently trending around 0.8586.
Euro (EUR) Supported by German Inflation Rate
The Euro has been able to limit any losses against the Pound this morning following the latest inflation rate data from the Eurozone’s largest economy, Germany, which came in above forecasts at 2% during April.
Further supporting the Euro today are the latest industrial production figures from the Eurozone which came in above forecasts at 1.0% during March.
The FOMC remained in dovish mode, despite promising US numbers. The UK economy is gradually reopening, but the eurozone is still hampered by a slow vaccine rollout.
In April, German Inflation rose above the 2% level for the first time in two years. In the eurozone, CPI is expected to rise to 1.6% in April, up from 1.3%. German GDP fell by 1.7% in Q1 from the previous quarter, as Covid-19 caused a downturn in the economy.
Canada’s GDP posted a gain of 0.4% in February, down from 0.7% a month earlier. The US dollar dipped after the FOMC meeting, as the Fed said it was premature to discuss tapering. US GDP rose 6.4%, beating the forecast of 6.1%. The robust reading was another sign that the US economic recovery is in full swing.