£-€ continues to struggle breaking through key resistance barrier

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waterman

Written by Dan Waterman
January 15th 2026
The data-houses we follow got today's prediction half right at least..

UK GDP for November rose by +0.3%, meaning it beat the +0.1% forecast and nicely recovers from October's -0.1%.

The UK economy back in November was aided drastically by the re-opening of Jaguar Land Rover after a horrendous cyber attack in August. So don't expect the UK is now on the cusp of an economic renaissance with this latest figure, it remains very much 'flat'.

Speaking of, so does GBP v EUR..

As we highlighted in our report on Tuesday, the data-houses we follow correctly predicted the beat on GDP today, but they were wrong in that £-€1.1550 mid-market could breached on the positive data.

Traders seem to be very keen on holding £-€ at the current level and we are either in a consolidation phase or we are trading at the top of the range for the pair. We will get some form of answer to that next week when the UK releases important jobs and inflation data.

Still, GBP v EUR remains 1% up on the year and 2.5% up since the Autumn Budget.

In other news, Germany is finally out of recession. Something that has quietly gone under the radar. German GDP last year rose by a tepid +0.2% (but growth nonetheless). For context, it saw -0.9% in 2023 and -0.5% in 2024. 'The sleeping giant' will no doubt help the Euro's price this year as the German economy looks set to expand in 2026.