Euro to British Pound (EUR/GBP) Exchange Rate Falls Further after Carney Comments
The Euro to British Pound (EUR/GBP) exchange rate extended losses on Tuesday after Bank of England (BoE) Governor Mark Carney asserted that it would be ‘foolish to loosen fiscal policy.
Today’s German Labour Cost report came in at 1.0% in the final three months of last year, up from 0.2% in the third quarter.
Costs were yo 2.0% on the year.
Today’s UK Industrial/Manufacturing Production data could push the EUR/GBP pairing lower still.
The Euro to British Pound (EUR/GBP) exchange rate is currently trading in the region 0.7072
Euro to British Pound (EUR/GBP) Exchange Rate Extends Decline
Concerns relating to the Greek debt negotiations saw the Euro’s downtrend against the Pound worsen as Tuesday progressed.
According to Bloomberg; ‘The agreement covered the way forward for Greece and consisted of three main elements.
- Greece would come up with a set of budgetary measures that would allow a successful review by the institutions.
- Greece would then implement these measures.
- The institutions would disburse funding to Greece as successful implementation progressed.
With this deal in place, it briefly seemed as if things would quiet down for Greece, at least for a few months. Unfortunately, a sticking point has already emerged, which was highlighted at yesterday’s Eurogroup meeting. That sticking point is due to the very slow progress on meeting any elements of the February deal.’
The Euro to Pound Sterling (EUR/GBP) exchange rate was trading in the region of 0.7103 after hitting a low of 0.7093.
The Pound Sterling to Euro (GBP/EUR) exchange rate advanced by 0.9% on the day’s opening levels to trend in the region of 1.4071.
Earlier in the European session the GBP/EUR pairing achieved a high of 1.4090.
If tomorrow’s industrial/manufacturing production data for the UK does show the expected improvement, the EUR/GBP pairing is likely to register additional losses.
The Euro to British Pound (EUR/GBP) exchange rate plummeted to yet another multi-year low on Monday as the European Central Bank (ECB) launched its hotly anticipated QE scheme and the GBP/EUR pairing went on to breach the 1.40 level as the week continued.
Euro to British Pound (EUR/GBP) Exchange Rate Softer, German Trade Data Disappoints
The common currency softened against a number of its most traded peers as the ECB wielded the largest tool in its arsenal and deployed quantitative easing.
Greek debt negotiation concerns and disappointing German trade data also weighed heavily on the Euro.
The Euro to British Pound (EUR/GBP) exchange rate hit a high of 0.7176
German exports were shown to have dropped by -2.1% in January on a month-on-month basis, exceeding forecasts for a -1.5% drop. December’s figure was negatively revised to 2.8%.
Imports also dipped, falling -0.3% on the month instead of showing the 0.5% growth anticipated.
The result saw the Euro consolidate declines against the US Dollar.
As stated by industry expert Boby Michael; ‘The euro was slightly off the 12-year low touched on 6 March ahead of the German data but showed weakness after the numbers were released. The EUR/USD moved to 1.0861 from the previous close of 1.0849 in early Asian trade but slipped to 1.0857 after the data.’
Meanwhile, negotiations between Greece and its creditors broke down swiftly, leading to ECB President Mario Draghi urging the Hellenic nation to be more receptive to compromise.
Greek Finance Minister Yanis Varoufakis was told that the government’s books must be gone over before the nation will be granted additional financial aid.
Varoufakis was quoted as saying; ‘The troika is a cabal of technocrats that used to arrive in Athens and enter the ministries with a kind of power play that smacked of a colonial attitude. That practise is finished. We shall endeavour to do whatever it takes to provide the institutions with whatever information they need.’
While the Euro to British Pound (EUR/GBP) exchange rate slid, the British Pound to Euro (GBP/EUR) currency pair consolidated previous gains and achieved a new seven-year high.
British Pound to Euro (GBP/EUR) Exchange Rate Advances Beyond 1.40
Although notable economic reports for both the UK and Eurozone were lacking on Tuesday, the British Pound to Euro (GBP/EUR) exchange rate was still able to briefly advance beyond the 1.40 level.
The Euro to British Pound (EUR/GBP) exchange rate hit a low of 0.7135
The British Retail Consortium’s Like-for-Like Sales report, a low volatility UK ecostat, had little impact on Pound trading.
The data showed a 0.2% year-on-year increase in February, lower than the 0.5% rise anticipated.
Meanwhile, Spanish Retail Sales data fell short, showing a -0.4% month-on-month slide in January and a 4.1% annual gain.
A month-on-month gain of 1.08% had been expected. December’s figures were positively revised however.
Euro to British Pound (EUR/GBP) Exchange Rate Forecast to Fluctuate on Central Bank Commentary
The British Pound to Euro (GBP/EUR) exchange rate could experience additional movement in the hours ahead as several officials from both the Bank of England (BoE) and European Central Bank (ECB) speak.
Hawkish comments from the BoE or dovish comments from the ECB could help the Pound push higher still.
On Wednesday EUR/GBP exchange rate fluctuations are likely to be triggered by German labour cost data and the UK’s Manufacturing/Industrial Production reports.
The British Pound to Euro (GBP/EUR) exchange rate was trending in the region of 1.3989, The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.0747, The US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9298, The Euro to British Pound (EUR/GBP) exchange rate was trending in the region of 0.7148.