After British data failed to impress on Friday, the Euro to Pound Sterling (EUR/GBP) exchange rate advanced by around 0.40%. Better-than-expected Greek and Portuguese economic growth, meanwhile, has seen the Euro to US Dollar (EUR/USD) Exchange Rate strengthen by around 0.22%.
The Euro to Pound Sterling exchange rate is currently trending in the region of 0.7954.
The Euro to US Dollar exchange rate is currently trending in the region of 1.2485.
Euro (EUR) Advances on Greek Growth
The single currency has advanced against the majority of its most traded competitors as a result of better-than-anticipated Greek Gross Domestic Product. Year-on-year Greek GDP eclipsed the median market forecast of a rise from 0.4% to 1.7%, with the actual data reaching 1.9%. In addition, Portuguese GDP saw a yearly growth of 1.1%, beating estimates of 1% growth.
German data also printed reasonably positively on Friday. On a yearly basis, German Retail Sales declined from 2.4% to 1.7%, but monthly Retail Sales increased from -2.8% to 1.9%. Eurozone data was less impressive, showing inflation to have declined further. However, the results did meet with the market consensus and was therefore already priced in. The estimate for the Eurozone Consumer Price Index dropped from 0.4% to 0.3%, and the Core CPI held at 0.7%.
Sterling (GBP) Softens on UK Data
British economic data printed poorly on Friday, allowing the Pound to slump against nearly all of its major peers. The GfK Consumer Confidence Survey was forecast to increase from -2 to -1, but the actual result held at -2. Seasonally adjusted monthly Nationwide House Prices declined from 0.5% to 0.3%, and non-seasonally adjusted yearly Nationwide House Prices softened from 9.0% to 8.5%.
US Dollar (USD) Trending Higher amid Risk Aversion
After OPEC opted to maintain the current rate of oil production, trader risk sentiment dampened considerably. The US Dollar, therefore, has strengthened as a result of its safe-haven qualities. The OPEC decision is also seen as beneficial to the US which has bolstered ‘Greenback’ (USD) gains.
Euro to Pound Sterling and US Dollar (EUR/GBP/USD) Forecast to Soften
With the Eurozone inflation data indicating the possibility of deflation, speculation that the European Central Bank will use unconventional measures to shore up the flagging Eurozone economy is likely to cause the single currency to soften.
The Euro to Pound Sterling exchange rate has trended within a range of 0.7910 and 0.7960.
The Euro to US Dollar exchange rate has trended within a range of 1.2427 and 1.2490.