The Euro to Pound Sterling (EUR/GBP) exchange rate has fallen by a notable amount so far today; elsewhere, the Euro has been in a major downtrend across the board.
EUR/GBP Exchange Rate News: Lack of Solid Input sees Investors Wary of Single Currency
The Euro (EUR) has lost out by -0.3% against the Pound Sterling (EUR/GBP) today, with sizable declines in value also been seen in other currency pairings. This has equated to -0.4% against the Australian Dollar (EUR/AUD), -0.4% against the Polish Zloty (EUR/PLN) and -0.9% against the Japanese Yen (EUR/JPY).
The Euro has mainly been affected by Wednesday’s decision by the Federal Reserve to finally raise the US interest rate from 0.25% to 0.50% after almost a decade of no rate hikes. The news saw the US Dollar (USD) gain in value while the Euro conversely lost out.
More recently, today has seen the low-impact release of the fractionally increasing Italian Wage Inflation results for November.
Tight Trending for Pound Sterling (GBP) Today as UK Referendum Talks make Tentative Progress
The Pound Sterling (GBP) has been making marginal gains against most of its currency peers today, primarily due to waning investor confidence in the UK currency. The most recent event to affect the Pound has been the announcement from Prime Minister David Cameron that after last night’s talks with EU leaders, a ‘pathway to a deal’ has been discovered. However, these remain very early days with regard to Cameron’s ultimate goal of reform and the condition to freeze the benefits of migrants entering the UK for 4 years is still a bone of contention with the leaders of France, Germany and a number of other EU heads.
The Pound Sterling has risen today by 0.2% against the Euro (GBP/EUR), 0.3% against the Omani Rial (GBP/OMR) and 0.3% against the Qatari Rial (GBP/QAR), but losses of -0.5% against the Hungarian Forint (GBP/HUF), -0.8% against the Japanese Yen (GBP/JPY) and -1.6% against the Russian Ruble (GBP/RUB) have also been recorded. This fall in spite of apparently positive economic results is an unfortunate echo of yesterday’s Sterling performance.
EUR/GBP Exchange Rate Forecast: Further Referendum Developments may Cause Movement Before Next Week
The next occurrence that is likely to cause significant movement in the EUR/GBP pairing will most probably come from the UK if any further official remarks are made regarding the ongoing UK-EU relationship renegotiations. At the time of writing, leaders had cautiously agreed that compromises could be made, but problematically, these sentiments have largely been heard before in one form or another. With potentially two more years of bargaining and evasiveness before the actual vote, it remains to be seen whether the current political sabre-rattling will have a long-term effect on the Pound’s value relative to the Euro.
More definitely, this afternoon will see the release of Belgium’s Consumer Confidence score for December, which at the time of writing was forecast to decline from -4 points to -4.71.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7250 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3794 today.