The Euro (EUR) has expanded its earlier gains against the Pound Sterling (EUR/GBP), having claimed a decisive victory of 0.5% against the UK currency (GBP).
New Car Tests may Eliminate Future Emissions Scandals, Announcement Boosts Euro (EUR)
With few domestic data releases of note out this afternoon, the Euro’s (EUR) advance against Pound Sterling (GBP) and others may be a result of the recent announcement from the EU that independent tests will be carried out on new car emissions, so as to eliminate the vast levels of corruption that came to light last year with VW.
At a time when scandals are breaking out in countless industries and professions across the world, the news can only be considered positive progress towards a more ‘glasnost’ future in Europe and elsewhere.
The Euro (EUR) has risen fractionally against the Pound Sterling (EUR/GBP) since earlier, with this movement rendered somewhat impressive given the bleak forecast put forward by Deutsch Bank for an EU-harming outcome of a ‘Brexit’ scenario.
Two-Way Street of Misery Forecast by Banking Group if UK Pulls out of EU
Deutsch Bank’s Chief Economist, David Folkerts-Landau, has predicted that ‘The implications of the UK not being in the EU will be truly devastating for Europe’. With alarming clarity, Folkerts-Landau stated that ‘If Brexit were to occur, continental Europe will be relegated to second rank status’.
The Euro (EUR) has made a gain of 0.2% against the Pound Sterling (EUR/GBP) this morning, mainly due to a neutral result from the Eurozone and a detrimental outcome from the UK’s Nationwide House Prices for January.
Further UK Data This Morning may Shift EUR/GBP Exchange Rate in Different Direction
The next economic publication likely to have an impact on the EUR/GBP pairing will come from the UK, with the imminent announcement of the BBA Loans for House Purchases result for December. Current forecasts are for a rise in the figure from 44960 to 45500.
The Euro (EUR) has declined by -0.3% against the Pound Sterling (EUR/GBP) today, having been put into this position by the Pound’s (GBP) gradual appreciation. Sterling’s gains have been triggered by the answers given by Bank of England (BoE) Governor Mark Carney to the Treasury Select Committee.
Potential for Euro (EUR) Rise against GBP as Carney’s Answers are Digested
While the Pound (GBP) is currently in an advantageous position against the Euro (GBP/EUR), it remains to be seen whether or not the UK currency will be able to maintain its current gains, given that with no other data to refer to, investors and economists will largely be scrutinising the answers given by Carney today.
The Euro to Pound Sterling (EUR/GBP) exchange rate has risen slightly today while in other pairings the single currency (EUR) has made a variety of low-key movements. Pound Sterling (GBP) has largely fallen against peers due to ‘Brexit’ worries and few domestic releases.
EUR/GBP Exchange Rate News: Draghi Came Out Swinging Yesterday and Initiated Brief Euro Uptrend
The recent movement of the Euro (EUR) has largely been positive, which is somewhat incongruous having been associated with European Central Bank (ECB) President Mario Draghi. Speaking in Germany yesterday, Draghi deviated somewhat from the usual script of ‘wait and see’ phrases and attacked his detractors, saying: ‘Confidence comes from every party fulfilling its mandate [and] that’s what the ECB will do’.
The policymaker also went on to assure investors and economists alike that ‘Though low interest rates can encourage risk-taking, there are no warning signs of serious financial instability’. Many interpreted Draghi’s words as meaning that more easing measures would be introduced at the next policy meeting in March, which while having an initial negative effect on the Euro’s value would ideally result in a more stable Eurozone economy.
The Euro has risen by 0.2% against the Pound Sterling (EUR/GBP) today and has made a greater gain of 0.4% against the Polish Zloty (EUR/PLN). On the flip side, losses of -0.3% against the New Zealand Dollar (EUR/NZD) and -0.5% against the Australian Dollar (EUR/AUD) have been seen.
Carney Testimony Ongoing as Pound Sterling (GBP) Fares Poorly
The Pound Sterling (GBP) has been performing poorly today, with the lack of direct data compounding the issues brought up by the recent flurry of UK Referendum activity and difficult tax questions.
In a number of alarming forecasts, some economic organisations such as Credit Suisse have predicted a house and share price crash and up to a -2% reduction in the UK’s GDP in the event of the UK exiting the EU.
In ongoing news, Bank of England (BoE) Governor Mark Carney is answering questions from the Treasury Select Committee regarding December for the UK and global economies. Looking ahead, however, Carney has potentially contributed to Pound’s decline by ambiguously answering a question regarding his intention to remain Governor for 8 years, instead of the current 5.
Among the Pound’s losses today have been -0.3% against the Euro (GBP/EUR), -0.4% against the US Dollar (GBP/USD) and -0.7% against the Australian Dollar (GBP/AUD).
EUR/GBP Exchange Rate Forecast: Further Committee Answers and German Confidence due in Near Future
Any further movement in the EUR/GBP exchange rate in the near future is set to be dependent on two things – the answers of Carney and his fellow BoE officials during the ongoing Q&A with the TSC, as well as tomorrow morning’s German Consumer Confidence survey for February. No forecasts had been made at the time of writing.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7639 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3092 today.