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Euro to Pound Exchange Rate Trends Tightly despite Supportive PMI Outcome

  • EUR GBP climbs to 0.90 – GBP EUR down at 1.10
  • Euro tight against Sterling despite positive data day – Eurozone unemployment rate due Thursday
  • Pound highly mixed after NIESR inflation warning – Final UK PMIs out tomorrow

The Euro has been close in trading against the Pound today, partly because of recent concerning predictions that Italy may be on the cusp of a Greece-style debt crisis and bailout cycle.

Actual data from the Eurozone has been broadly positive, with the manufacturing PMI for October rising and German unemployment rates falling slightly.

The Pound has been plainly mixed against its peers, in spite of recent, highly concerning news. This has been the National Institute of Economic and Social Research (NIESR) report, which has estimated that UK inflation will rise to 4% in 2017, which when coupled with recent glacial growth in UK wages could spell disaster for low-income households.

(Last updated November 2nd, 2016)

With the UK’s major data now out, the Pound seems set to trade in a mixed position today due to widespread uncertainty about further PMI printings.

EUR Exchange Rate News: Euro Climbs against the Pound on Barren Data Releases

Euro Pound exchange rate movement today has been steadily improving, though at the time of writing the common currency was unable to rise far enough to break above 0.89 against Sterling.

Eurozone news has been thin on the ground today, compared to yesterday’s high-impact German and Eurozone wide announcements.

The only notable news affecting the Euro has been that Ireland’s manufacturing PMI for October has risen slightly, while the Greek manufacturing PMI for the same month has slipped further into contraction.

Pound Instability comes as October’s PMIs Start Off Poorly

The Pound’s performance against the Euro has been undesirable today, with losses being triggered by the latest manufacturing PMI result for October. Although better than forecasts, the drop from 55.4 to 54.3 has still indicated a softening of sector growth.

In other UK news, after Monday’s intense speculation about his future, Bank of England (BoE) Governor Mark Carney has now confirmed that he will extend his term to 2019, one year beyond the previous cutoff point for his role with the BoE.

This has ended the spiral of rumours about government pressure and a possible extension for Carney’s tenure to 2021; in response, the Pound appeared to have firmed slightly before the PMI news.

British Pound

EUR GBP Exchange Rate Forecast: Volatility Likely on Wednesday’s German Unemployment Rate Data

The next news likely to impact the Euro will arrive tomorrow morning, covering Germany’s unemployment rate and unemployment change for October.

As it stands, a rate stagnation at 6.1% has been forecast, along with a -2k drop in the number of unemployed people.

Shortly after this news, the European Central Bank (ECB) non-monetary policy meeting is due; this is also considered to be high-impact.

From the UK, movement will be caused by further PMI printings for October, with the next concerning construction. As with today’s manufacturing PMI, a a slowdown in the rate of growth has been forecast.

Current Interbank Exchange Rates

The Euro Pound (EUR GBP) exchange rate was trending in the region of 0.89 and the Pound Euro (GBP EUR) exchange rate was trending in the region of 1.11 today.