The Euro has dropped off against the Pound during trading today, despite a drop in Eurozone debt to the lowest level in four years.
- EUR GBP rate falls to 0.86 – GBP EUR trades at 1.16
- Euro drops against Sterling despite Bundesbank report – German inflation predicted at 2% in January
- Pound rallies after PM releases industrial strategy – ’10 Pillars’ point to broad spread of national improvement
- Eurozone confidence looking low at present – UK borrowing deficit due to drop tomorrow
Interest in the Pound has jumped after the release of concrete UK development plans by the Government, which come at a time when information regarding the UK’s future is sorely needed.
Eurozone Stats and Forecasts Fail to Improve Flagging Euro Pound Exchange Rate
The latest news out of the Eurozone has concerned national debt within the single currency bloc, which has fallen to its lowest level in four years. Although this bodes well for the Eurozone’s future economic growth, it has failed to inspire a rally against Sterling.
Additional Eurozone news has come from Bundesbank, which has released its monthly report. Again, positivity has come in the form of a forecast 2% level of German inflation in January, though this has been negated by prevailing negative Eurozone sentiment.
Pound Sterling Boosted by Government’s Reveal of UK Industrial Plans
The Pound has started the week on a strong footing, having jumped against peers due to the release of the Government’s ’10 Pillars of Industrial Strategy’.
Covering a general theme of national economic growth, the pillars also include plans to make the UK ‘a global leader in free trade’, as well as to ‘support businesses and entrepreneurs across the UK’.
At a time when optimism is in short supply, the strategy release has done the trick, sending Pound demand soaring on the hopes that these plans will be followed through in the future.
Future EUR GBP Forecast: Worsening Eurozone Confidence Today could Limit EUR Demand
The next major Eurozone announcement to watch out for is due over the afternoon, when the Eurozone consumer confidence flash for January is set to be announced.
At the present time, the situation looks poor for the Euro, given that the last figure in December showed a drop of -5.1 in the confidence index.
From the UK, the first major data releases of the week are due on Tuesday, when Government borrowing figures are due over the morning. At the time of writing, forecasts were for a supportive reduction in the current deficit, from -12.21bn to -7.2bn.
Also expected over Tuesday will be a speech from Bank of England (BoE) official Chris Salmon in the late afternoon.
Current Interbank GBP EUR Exchange Rates
At the time of writing, the Euro Pound (EUR GBP) exchange rate was trending in the region of 0.86 and the Pound Euro (GBP EUR) exchange rate was trending in the region of 1.16 today.