Pound Sterling to Euro (GBP/EUR) Exchange Rate – Euro softens today as German GDP and balance of trade data weighs

The Pound remained trading above the 1.20 level against the Euro on Wednesday due to the single currency being weighed down by weaker than expected German GDP and Eurozone balance of trade data.

Data released early in the session showed that Germany’s GDP growth rate for 2013 was lower than economists had been expecting. The data showed that the Eurozone’s largest economy expanded by just 0.25% in the fourth quarter of 2013, its weakest rate of growth since the start of the global financial crisis in 2007. According to the German Federal Statistics office, annual growth rose by just 0.4%.

“Obviously the German economy suffered from the continuing recession in some European countries and from restrained growth of the global economy. The strong domestic demand could offset those factors only to a limited extent,” said Roderich Egeler the President of the Federal Statistical Office.

In a separate report compiled by the European Union Statistics Office (Eurostat) the Eurozone’s trade surplus widened less than forecast. The surplus widened by €17.1 billion. The increase was down to a decline in imports which suggests that demand for goods from overseas remains weak and cast some doubt on the regions recovery. Economists had been expecting a surplus of €16.8 billion.

Sterling is expected to push higher on Thursday with the release of the latest UK house price data which is expected to show a rise from the previous month.