The Euro to Pound Sterling (EUR/GBP) exchange rate has fallen today due to a combination of detrimental factors making the single currency (EUR) highly undesirable at present.
EUR/GBP Exchange Rate News: Eurozone Talk Halts, VW Scandal and Industrial Slowdown Damage Euro Today
The Euro (EUR) has fallen by -0.3% against the Pound Sterling (EUR/GBP) today as just one of a number of significant losses for the common currency. Other notable drops have included -0.7% against the Australian Dollar (EUR/AUD) and the Japanese Yen (EUR/JPY), -0.8% against the South African Rand (EUR/ZAR) and -1.2% against the New Zealand Dollar (EUR/NZD).
The Eurozone has been a house of troubles lately, something hardly supportive of its currency. The Volkswagen scandal took a further turn for the worse when it was revealed that an additional emission-tampering device is present in 2016 VW models; naturally this has raised further concerns over the future of the company, with particular focus being placed on the impact that the ruination of VW would have on Germany’s economy.
In addition to this, the postponing of talks by EU leaders over the Economic and Monetary Union (EMU) until December has been seen as another sign of instability in the Eurozone; the schedule was altered due to the ongoing migrant crisis affecting European nations and the current inability to find an agreement between two major Eurozone members, Germany and France.
Finally, the value of the Euro has declined significantly following on from yesterday’s Eurozone Industrial Production figures for August, which posted negatively in the monthly field and only rose by half the predicted amount on the year.
Pound Sterling has Inconsistent Performance on No-Data Day, Ekes out a GBP/EUR Rise
The Pound Sterling (GBP) has had a slightly better fairing than the Euro (EUR) today by posting some advances against rivals, although overall Sterling has put on a middling performance. Particular gains include 0.3% against the Euro (GBP/EUR) and 0.4% against the Polish Zloty (GBP/PLN) and the Russian Ruble (GBP/RUB), while losses have been made up of -0.5% against the Israeli New Shekel (GBP/ILS), -0.7% against the Turkish Lira (GBP/TRY) and -0.9% against the New Zealand Dollar (GBP/NZD).
With no UK domestic data out today, the only notable development for Sterling has been the appointment of former Bank of England (BoE) policymaker David Blanchflower by the Labour Party as the head of a review committee into the BoE.
EUR/GBP Exchange Rate Forecast: Eurozone Inflation to Provide last Major Movement Tomorrow
Today has been devoid of direct high-impact UK or Eurozone data, therefore the next event likely to shift the pairing will be the announcement of the final Eurozone Consumer Price Indices for September tomorrow. At the time of writing, forecasts were divided with regard to the overall impact of the results, as a rise had been predicted in the monthly base and annual Core figures, while a fractional decline was forecast for the base annual result.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7387 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3537 today.