- Single Currency remains resilient as Greek situation shows signs of progress
- EUR/GBP edges higher
- Pound Sterling fluctuates ahead of production data
- Annual UK industrial/manufacturing production expected to dip
Euro Advances on Greek Debt Deal Optimism
With Greek Prime Minister Alexis Tsipras expressing confidence in the progress being made in the nation’s latest debt relief discussions, the EUR/GBP exchange rate crept higher on Wednesday.
While the Eurozone isn’t set to publish any influential reports in the hours ahead, the UK’s Industrial and Manufacturing Production data could help the common currency extend gains if they show the annual decline in output forecast by economists.
Currently the Euro to Pound Sterling (EUR/GBP) exchange rate is trending in the region of 0.7893
EUR/GBP Steady after BRC Results
The Euro to Pound Sterling exchange rate remained trending in a narrow range following the release of the British Retail Consortium’s Like-for-Like sales report for April.
The result of -0.9% year-on-year disappointed forecasts for a reading of 0.5%.
However, Pound losses were limited as Germany’s Industrial Production figures for March fell short and the latest Greek developments remained in the spotlight.
Today’s UK trade data could cause EUR/GBP volatility in the hours ahead, but as it stands the pairing is trending in the region of 0.7896.
The Euro has failed to shift its position against the Pound today, although some of the most pessimistic forecasts to come out of the Greek debt situation have been for an almost 260% debt to GDP ratio by 2060.
The Pound has similarly advanced against most of its peers, despite former London Mayor Boris Johnson staging a fierce opposition to the PM’s earlier warnings about ‘Brexit’.
The Euro has managed to edge up against the Pound Sterling today, although elsewhere it has been a decidedly more unstable prospect.
The Pound has neither lost or gained against peers overall, with the balance of positive and negative exchange rate results generally being even.
Eurozone Economic News: Greek Economic Reforms Place PM in Unenviable Position
The Euro’s movements have been generally positive recently, although a few sizable losses have also been seen.
These have consisted of -0.2% against the South African Rand (EUR/ZAR), the Swiss Franc (EUR/CHF) and the Indian Rupee (EUR/INR). On the other hand, gains have been made of 0.2% against the Pound Sterling (EUR/GBP) and 0.5% against the Australian Dollar (EUR/AUD).
In terms of domestic data, the biggest Eurozone news of the day has been that German factory orders on the month and year in March have risen, although this positivity has been offset by wider instability between Eurozone nations.
The focus has been on the Greek government, which has been struggling to balance the act of implementing harsh tax and pension reforms with the increasingly violent protests of the population to these measures in the capital.
Speaking on the still-unresolved situation, Greek Minister of Finance Euclid Tsakalotos said:
‘We have done what we promised and hence the IMF and Germany must provide a solution that is feasible…a solution for the debt that will open a clear horizon for investors’.
Pound Sterling (GBP) Slips after PM Spells Out Possible Security Risks of Leaving EU
The Pound has been lacking overall against its rivals, with losses including a slight slip against the Euro (GBP/EUR), -0.2% against the US Dollar (GBP/USD), -0.5% against the Swiss Franc (GBP/CHF) and -0.7% against the Israeli New Shekel (GBP/ILS).
Although it may have been forecast to bolster the Pound against its peers, the morning’s speech by the Prime Minister does not seem to have resulted in any real positivity for the UK currency.
The PM has put forward a bleak and, as his detractors are sure to call it, sensationalist argument that if the UK leaves the EU after the June 23rd vote, the security and integrity of the European Union could be put at serious risk, which in turn could result in internal conflicts developing that the UK would be forced or obliged to intervene with.
Future GBP, EUR Forecast: European Central Bank (ECB) Officials to Speak
The next notable developments for the EUR/GBP pairing are likely to come from the Eurozone, in the form of a pair of speeches from ECB officials.
This morning, a delivery from Vitor Constancio is expected, while in the afternoon Benoit Coeure is due to give a speech.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7916 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2635 today.