Exchange rate of the pound euro: GBP / EUR holds even though EC brings the UK to the bottom of the class

Sterling maintains the euro today despite a fearsome warning from the European Commission that puts Great Britain at its lowest position in the EU growth league of 2019.

The EC report estimates that British economic growth would be only 1.2% in 2019, against an average of 2.0% for the EU as a whole, and far below the expected 4.5% growth of Ireland.

What was more about Sterling investors was the fact that these figures are based on the assumption that the UK will leave the EU with a robust trade agreement – a so-called 'soft Brexit & # 39 ;.

Would Britain leave without a deal in place, the growth rate would be even lower.

At the same time, Italy remains a major main problem for the EU, as the economic forecast report from the EC also places the fiscally wandering country at the bottom of the rankings with the UK as a result of the ongoing dispute between Brussels and Rome over the draft budget for 2019.

The Commission expects Italy's economy to grow by another 1.2 percent next year, under the expectation of 1.5% in Rome, resulting in a deficit of 2.9% in Italy, which is much higher than the 2.4% predicted in its controversial budget.

In the absence of significant Eurozone data releases today, this row is likely to remain a major concern for EUR investors, potentially raising EUR / EUR.

With the euro moderating, investors in GBP / EUR are focusing on the latest growth figures coming from the UK this morning.

GDP growth in the third quarter was 0.6 percent, an increase compared to 0.4 percent in the second quarter.

This comes as a welcome relief for pound investors, who see it as a further proof of resilience in the UK economy for Brexit.

Further strengthening of confidence was the British trade balance, which was expected to reach £ -1.1 billion, but is instead being printed at a much better £ -0.027 billion – although this was offset by a halt to the growth of the industrial production, which showed no growth at all in the month of September.

While traders still process these figures, the GBP / EUR exchange rate has not shown market movements and continues to trade at a price of € 1.148.