Exchange Rate: GBP/EUR Forex Trading Forecast for Oct 7
On Monday the GBP fell against the EUR from a daily high of 1.2769 to a low of 1.2727.
The GBP has been falling since data released on Friday showed that the UK services sector growth slowed in September which indicates that the economic recovery may be slowing. The UK services purchasing managers index fell to a three month low of 58.7 from 60.5 in August. Furthermore, last Wednesday data was released showing that output in the UK manufacturing sector slowed to a 17 month low in September.
However, news is not much better out of the Euro Zone. Data released on Monday showed that investor confidence in the region for October has fallen to the lowest level in 17 months. As a result this pair could go either way depending on the industrial production data published in the UK on Tuesday. The data is forecast to be positive so the GBP should recover some of its value.