• German GDP figures far better than predicted
• Eurozone GDP data show no signs of slowdown

As yet, Brexit has had negligible impact on the Eurozone, this morning’s GDP figures for Germany and the Eurozone support this. Given German retail sales and industrial output, the general consensus was that German GDP data would fall sharply for the second quarter.

However estimates of 0.2% this morning were outperformed, a result of 0.4% whilst slower than Q1, provided fresh hopes for powerhouse of the EU in a post-Brexit environment. The big surprise for markets were the YOY GDP figures which doubled expectations.

The release was a good indicator of what was yet to come for the Eurozone GDP release at 10am, providing the markets with little evidence of economic slowdown.

Sterling under further pressure

With investors gauging the impact of Brexit on Both the UK and Eurozone, the news this morning could spell bad news for GBPEUR exchange rates. It would seem at first glance that the UK is struggling far more than the Eurozone since the historic vote, Sterling could be in for further losses in the days and weeks to come.

Next week explores another round of UK economic data which if trends follow, could see exchange rates fall below the 1.15 range, with the news following a fall in housing prices I am expecting both the rightmove and DCLG housing price indexes to show falls. But the PPI and consumer price figures could cause further stirs for the currency pair. Consumer price measures core inflation and whilst retail sales have been up for the month of July, business confidence has fallen sharply since Brexit which could translate to lower growth.

Euro buyers, your window of opportunity could be narrowing, buying now could save you from further losses next week.