Euro (EUR) Down on Pound (GBP) Today after Response to Treasury Report
While yesterday saw the Pound seesaw against its peers, today has seen GBP hold earlier gains.
The GBP/EUR exchange rate held the 1.26 level ahead of the release of the ZEW economic sentiment surveys for Germany and the Eurozone.
Gove’s Response could Trigger GBP Rise, if Solid Case is made for Leaving
As part of a planned response to yesterday’s Treasury forecast that spelt doom in the event of a ‘Brexit’, Justice Secretary and ‘Leave’ Chair Michael Gove is expected to speak today on why the recent report is a ‘scaremongering’ tactic.
Tellingly, however, it has been reported that the ‘Leave’ campaign will not put forward a similar positive predicting document for leaving the EU, which problematises the repeated claims that a ‘Brexit’ would be good for the UK economy.
Euro (EUR) Slips Marginally against Sterling (GBP) Today after UK Oil News
The Euro (EUR) has lost its earlier lead against the UK currency, and is currently trending in a tight range against its usual rival.
‘Gatwick Oil’ Inspires Hope among UK Investors on Potential ‘Billion Pound’ Input
The most recent development for the UK economy today has been the beneficial announcement of plans to extract oil from the area close to Gatwick Airport.
According to the commissioning body of the optimistic report, UK Oil and Gas, between £7bn and £52bn may be added to the nation’s finances over 40 years, something that is sure to lighten the burden on an otherwise flagging energy industry that has had to put up with reduced output from the North Sea.
- Single currency strong overall today against GBP and other peers
- Lack of direct data leaves Greek debt talks in focus
- Pound Sterling movement uncertain as latest ‘Brexit’ forecast comes out
- Eurozone surveys due tomorrow may strengthen common currency
The Euro (EUR) has been a safe bet against the Pound Sterling (GBP) and other usual peers today, owing to a potential relief coming for the currently beleaguered Greek economy.
The Pound has generally been unstable against peers recently, owing to a lacklustre result from the day’s only UK data and another worrying prediction for what will happen in the event of a ‘Brexit’.
With the In-Out vote scheduled to be held on June 23rd any remarks made by key officials relating to the event and it’s potential ramifications are having a significant impact on Pound demand.
Eurozone Economic News: Potential for German Easing of Debt Ruling may Relieve Greek Economy
The Euro (EUR) has been stable against the competition so far today, having risen by 0.3% against the Pound Sterling (EUR/GBP), 0.7% against the Australian Dollar (EUR/AUD) and the South African Rand (EUR/ZAR) and by 1.2% against the Canadian Dollar (EUR/CAD).
Without any real domestic data to refer to, the Euro has appreciated today, potentially on account of an impasse being reached over the Greek debt situation.
Despite abject refusals from German Finance Minister Wolfgang Schauble to allow debt relief for the currently struggling Greek economy, it is possible that a compromise will have to be reached between the Hellenic nation, its creditors and the German Government, as a way of avoiding the country ‘going under’ or approaching a fourth bailout situation.
Pound Sterling (GBP) Unsettled by Gloomy Long-Term Treasury Prediction
The Pound (GBP) has been a currency of contrasts today, having risen by 0.3% against the Australian Dollar (GBP/AUD) and 1.9% against the Russian Ruble (GBP/RUB) although it has fallen by -0.3% against the Euro (GBP/EUR) and -0.7% against the Japanese Yen (GBP/JPY).
The only UK data to speak of has been the Rightmove house price results for April, which have reprinted at 1.3% on the month but fallen from 7.6% to 7.3% on the year.
Elsewhere, UK Referendum news has continued to destabilise the Pound, as Chancellor George Osborne has made a dire forecast that UK GDP could drop by -6% by 2030 in the event of a ‘Brexit’, something set out in a 200 page report to be released later today.
Future EUR, GBP Forecast: Bundesbank Report due Shortly, ZEW Surveys Out Tomorrow
The next economic information likely to affect the faring of the EUR/GBP pairing will come from the Eurozone, in the form of the monthly report from Bundesbank, which is due shortly.
Following on from this will be tomorrow’s Eurozone and German ZEW surveys of economic sentiment and the current conditions for April, as well as the Eurozone construction output result for February. Current forecasts have been for declines in the Eurozone fields but rises in outlook for the German printings.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7974 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2544 today.