The Pound Sterling to Euro (GBP/EUR) exchange rate softened by around -0.40% on Thursday morning.
After the second estimates for first-quarter British Gross Domestic Product remained unchanged, despite predictions of a 0.1% increase, the Pound softened versus many of its closely traded currency rivals. However Better-than-expected Loans for House Purchase data slowed the Sterling depreciation somewhat.
The Euro, meanwhile, strengthened versus many of its most traded currency peers in response to higher-than-anticipated German import prices. The single currency continues to strengthen despite conflicting statements about the speed at which Greece can secure bailout funds.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4019.
Pound Sterling (GBP) Exchange Rate Forecast to Decline versus the Euro on UK GDP
The second estimates for British GDP remained unchanged for the first-quarter, with annual growth coming in at 2.4% and quarterly growth at 0.3%. ‘Today’s unchanged figure reflects small upwards revisions to production and construction, offset by a downward revision to services,’ said Joe Grice, chief economist at the Office for National Statistics.
The Pound’s depreciation has been somewhat slowed, however, after other UK data publications printed positively. BBA Loans for House Purchase was forecast to rise from 39203 to 39300 in April, but the actual result reached 42116.
The Pound Sterling to Euro (GBP/EUR) exchange rate dropped to a low of 1.4005 today.
Euro (EUR) Exchange Rate Forecast to Gain versus the Pound on German Imports
After officials from Athens stated that Greece was close to securing a deal with Eurozone officials to unlock financial aid, the shared currency strengthened across the board. The single currency continues to advance despite opposing sentiment from European officials, who dismissed the notion that Greece is close to unlocking funds.
In addition to speculation that Greece will win over creditors, the common currency also appreciated thanks to positive data out of the currency bloc’s most influential nation. German Import Prices declined by -0.6% on the year in April; bettering the median market forecast declination of -0.7%. On the month, April’s Import Prices eclipsed the market consensus of a 0.5% increase, with the actual result reaching 0.6%. Mixed results from Eurozone confidence data has had minimal impact on Euro movement.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Hold Losses on Lack of Data
Given the absence of further domestic data publications, and with the single currency climbing seemingly irrespective of conflicting opinions surrounding Greece, the Pound Sterling to Euro (GBP/EUR) exchange rate is likely to hold losses for the remainder of Thursday’s European session. Thursday will see GBP/EUR volatility with several data publications pertaining to both the UK and Europe due for release.
The Pound Sterling to Euro (GBP/EUR) exchange rate climbed to a high of 1.4087 today.
