A spokesman at the Advocacy for National Statistics (ONS) comments on today’s report: “The UK economy saw no growth in the latest three months. There were spreads across the services sector, offset by falls in manufacturing with mills continuing the weak performance seen since April.” Today also saw the loosing of the UK Industrial Production figure for October, which came in below foretells 0.1 percent as factories struggled amid ongoing Brexit uncertainty and a delaying global economy.
However, the pound remained generally unmoved against the euro today as money-making data has taken on second fiddle to British political developments forwards of Thursday’s general election.
Sterling traders are instead awaiting this evening’s unloosing of the updated YouGov MRP poll.
Any signs of the Labour Party narrowing their gap with the Conservatives would evince pound-negative due to increased fears of a hung parliament this week.
Conversely, if the tally suggests an overwhelming majority win for the Tories on Thursday we could see the pound react to against the euro on returning confidence that Brexit uncertainty could be resolved by January 31.
Interval, the euro failed to gain on the pound after today’s release of December’s German ZEW Examination of Economic Sentiment, which beat forecasts and rose from -2.1 to 10.7.
Analysts at Reuters commented: “The well-disposed among German investors improved far more than forecast in December…, with an unexpected take-off provoke in October exports boosting hopes for an upturn in Europe’s biggest conservation.”
However, the single currency struggled to capitalise on today’s positive text as the outlook for the Eurozone’s economy still remains bleak amid the EU’s swap tensions with the US and slower global growth.
Looking ahead, the UK’s national developments ahead of Thursday’s UK general elections will continue to send the pound to euro exchange rate this week, with any insinuations of a hung parliament being pound-negative.