GBP and EUR Currency Pair

Outlook remains unstable for the pair of UK pound sterling and euro although the recent weakness may have come to an ending. However, investors preferring the British currency should expect a large movement in the sterling’s volatility going towards the general elections in May. Stability will only rule as soon as a new government comes to power, according to analysts.

The economic calendar of the United Kingdom was overshadowed by the Bank of England’s final Gross Domestic Product report for 2014. GDP came in at 0.6 percent which is more than the projection of 0.5 percent made by economists. In other words, GDP in its entirety increased at 2.8 percent during the previous year. This is the most significant growth since 2006 primarily helped by positive export data which pushed the pound sterling forward.

Meanwhile, figures for business investments were quite unsatisfactory coming in 0.9 percent lower compared to the reading last quarter. GBP and EUR pair was volatile the whole day due to upbeat growth which touched a high of 1.3837 and broke resistance point of 1.3799. GBP and EUR pair is now trading at 1.3788.

On the other hand, the UK pound and US dollar moved on a parallel trend and climbed from a low of 1.4754 before increasing to a high of 1.4844. The pair is presently trading at 1.4818.

The shared currency gave up more than one percent versus the dollar because of the face-off between the Greek Government and its creditors regarding the new debt reform structure.

According to the European Central Bank, there was decrease in the jobless rate from 11.4 to 11.3 percent. Lowest rates were posted by Greece with 26 percent followed by Spain with 23.2 percent and Germany with 4.8 percent.

Canada also disseminated its GDP numbers (decline from 0.3 to 0.1 percent) from January which frustrated the market. GBP and CAD increased roughly one percent because of said release and currently trading at 1.8795.