The Euro to Pound pairing has worsened slightly today, falling from an earlier rate of 0.8846 to the region of 0.8830.
A Eurogroup meeting today may have caused this decline, as it failed to resolve a key issue that policymakers could face in the future.
Current President Jeroen Dijsselbloem is due to end his term in early 2018, but there is no current successor in the wings.
The Eurogroup has so-far weathered Euroscepticism and nationalist pulls from within the EU and Eurozone, but it seems a strong leader will need to be chosen to ensure continued stability in the multinational organisation.
(First published November 6th, 2017)
The Euro has seen a moderate loss against the Pound today, following the release of slightly unsettling Eurozone activity measures.
- EUR GBP rate drops to 0.8846 – GBP EUR trades up at 1.1303
- Euro weakened by slowing activity – Eurozone continues to see growth
- Pound appreciates despite falling car sales – Business leaders set for May’s Brexit briefing
- Euro could recover on upcoming sales stats – Pound may slide before Friday’s trade data
The Pound has conversely risen, with even poor car sales failing to detract from the current appeal of Sterling.
Euro Loses Ground over Disappointing Services Stats
While overall services activity has not fallen by quite as much as expected, it still dropped for the October reading.
Looking at the big picture, the Eurozone remains on track for moderate growth, but traders are still wary about the possibility of future upsets.
Pound Advances despite Sliding Car Sales Figures
In an unusual development, the Pound has made a moderate advance against the Euro today despite mainly negative news.
New car sales in October have fallen by -12.2%, something blamed on a dwindling level of buyer confidence.
In spite of this bad news, however, the Pound has nonetheless appreciated because of background confidence about a speech from Theresa May.
The PM is tipped to reassure business leaders who are worried about Brexit, by claiming that the government is prepared for the challenge of living outside the EU.
Will Euro to Pound Rate Rise on UK Data Shortage?
The Euro has a clear advantage against the Pound this week, with Eurozone announcements coming over the course of the week.
Next up will be Tuesday morning’s retail figures; the retail PMI is tipped to slow, but there are also forecasts for higher reported sales in September.
Elsewhere, the German trade surplus is predicted to rise on Thursday, which could bring further support to the EUR/GBP exchange rate.
Unlike the previous busy week, there is a significant gap ahead before the next UK news comes out.
The only semi-important news before Friday will be Tuesday’s British Retail Consortium (BRC) like-for-like sales figure.
Covering October, this is expected to show a year-on-year rise from 0.9% to 1.9%.
Such news might trigger a small GBP/EUR advance, as it could reduce concerns about the UK struggling because of tough economic conditions.
Otherwise, the next notable Pound movement may be all the way ahead on Friday, when the September trade balance is announced.
Economists predict a slight reduction in the current trade deficit, which may inspire a late-week Pound to Euro advance.
Current Interbank EUR GBP Exchange Rates
At the time of writing, the Euro to Pound (EUR GBP) exchange rate was trading at 0.8853 and the Pound to Euro (GBP EUR) exchange rate was trading at 1.1294.