Euro to Pound Sterling (EUR/GBP) Exchange Rate Forecast to Tick Lower on Positive Carney Comments
The Euro to Pound Sterling (EUR/GBP) exchange rate softened by around -0.16% on Friday morning.
As German MPs vote on whether or not to accept the terms of the Greek bailout deal, the shared currency softened versus many of its peers. Although it looks likely that Germany will accept the deal, there is still mounting uncertainty that the proposal will not aid Greece but only delay the nation’s inevitable crash. Whilst most European officials agree that the deal is weak, there is also a significant lack of alternatives.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trending in the region of 0.6959.
The British asset, meanwhile, strengthened versus most of its currency rivals despite a complete absence of domestic data to provoke changes. Sterling appreciation can be linked to positive sentiment towards the Bank of England (BoE) after Governor Mark Carney suggested that a year-end rate hike was likely and that incremental rises will occur over the next three years.
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending within the range of 0.6942 to 0.6976.
Euro to US Dollar (EUR/USD) Exchange Rate Forecast to Trend within Limited Range ahead of US Consumer Prices
The Euro to US Dollar (EUR/USD) exchange rate was trending within a narrow range on Friday morning.
As German MPs continue to discuss Greece, much of the time has been taken up by individuals expressing concerns over the Hellenic nation. However, debt relief, which is arguably the most significant issue, has yet to be discussed. The terms of the new bailout deal will only work with some form of debt restructure, this was outlined by the International Monetary Fund (IMF) before the deal was made and their stance has not changed.
The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.0890.
After surging on Thursday due to a combination of safe-haven demand and positive domestic data results, the US Dollar weakened on Friday morning. The depreciation is likely to be the result of trader profit-taking after the uptrend opened up some attractive selling positions. The Consumer Price Index, due for publication later on Friday, has the potential to provoke significant US Dollar movement.
The Euro to US Dollar (EUR/USD) exchange rate was trending within the range of 1.0872 to 1.0907 during Friday’s European session.