A distinct disparity has arisen in the Euro to Pound Sterling (EUR/GBP) exchange rate, as the former has rallied this morning while the latter has declined considerably.
EUR/GBP Exchange Rate News: ECB Bulletin Offers Mixed Outlook as Eurozone Construction Builds
The Euro to Pound Sterling (EUR/GBP) exchange rate has risen by 0.7% today and with the exception of a narrow trending against the Indian Rupee (EUR/INR), the common currency has performed admirably against the rest of its competitors. This advance includes 0.5% against the Canadian Dollar (EUR/CAD), 0.6% against the Japanese Yen (EUR/JPY), 0.7% against the Australian Dollar (EUR/AUD) and 0.9% against the South African Rand (EUR/ZAR).
The Euro was dragged down in value yesterday by the Eurozone CPIs for August which saw a drop from 0.2% to 0.1% in the base annual figure and a fractional decline from 1% to 0.9% in the core yearly result. Today, the only major Eurozone releases have been generally beneficial; the monthly and yearly construction output figures for July both increased over the previous negative figures; -1.2% to 1% was recorded for the former while -1.3% to 1.8% was seen for the latter. The biggest Euro-centric release, the European Central Bank’s (ECB) Economic Bulletin, was less unanimous in its positivity, with the statement of ‘Euro area recovery is expected to continue’ being countered by an assertion that the ECB could and would use further quantitative easing if necessary.
Pound Sterling (GBP) has Decidedly Unhelpful News as UK Retail Sales Results are Published
The Pound Sterling (GBP) has fallen by -0.4% against the Euro (GBP/EUR) today, just one of many losses for Sterling. The Pound’s biggest losses have been made up of falls of over -0.4% against the Thai Baht (GBP/THB), the Czech Koruna (GBP/CZK) and the Indian Rupee (GBP/INR), while notable gains have mostly been against commodity and emerging-market currencies weakened by the impending Federal Open Market Committee (FOMC) interest rate decision. This includes 0.3% against the Australian Dollar (GBP/AUD), 0.4% against the Turkish Lira (GBP/TRY), 0.7% against the Russian Ruble (GBP/RUB) and 0.8% against the South African Rand (GBP/ZAR).
The UK Retail Sales figures for August failed to meet with predicted losses today, with the base annual figure dropping from 4.1% to 3.5% and the annual number Including Auto Fuel declining from 4.1% to 3.7%.
EUR/GBP Exchange Rate Forecast: Wasteland of EUR/GBP Economic Publications before 2nd 2015 Greek Election
For the remainder of the week, results affecting the Euro (EUR) and the Pound (GBP) are fairly thin on the ground; the Eurozone Current Account for July is out tomorrow, but other than that, the next big development in the Eurozone will be the outcome of the Greek election vote on Sunday. Recent polls have put former leaders Syriza and the opposition party New Democracy neck and neck, therefore the overall winner is currently too close to call.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7297 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3706 today.