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Euro to Pound Sterling (EUR/GBP) Exchange Rate Forecast: Déjà Vu as Single Currency Slides on ECB Caution

The Euro to Pound Sterling (EUR/GBP) exchange rate has slipped marginally today, while elsewhere the common currency’s losses have been considerably greater. This downtrend mirrors the movement seen on Monday and Tuesday; yesterday saw a temporary appreciation of the Euro (EUR).

EUR/GBP Exchange Rate News: ECB’s Praet Devalues Euro with Dovish Attitude Today

The Euro (EUR) has fallen fractionally against the Pound Sterling (EUR/GBP) today, with greater losses of -0.2% against the Canadian Dollar (EUR/CAD) and -0.6% against the Australian Dollar (EUR/AUD) also being seen.

Although the Eurozone Current Account results for September have come out positively today, the impact has been mitigated by a caution-laced speech from European Central Bank (ECB) Executive Board Member Peter Praet during Europe Finance Week. He concluded the address by advising that deciding ECB economic policy ‘requires that [policymakers]…are ready to take informed decisions; to act under uncertainty and deliver their mandates’.

Falling UK Retail Sales Result in Pound Sterling (GBP) Downtrend Today

The Pound Sterling (GBP) has made little positive progress against the Euro (GBP/EUR) today; against other rivals, the Pound has declined by -0.4% against the Mexican Peso (GBP/MXN), -0.5% against the Israeli New Shekel (GBP/ILS) and -0.6% against the Australian Dollar (GBP/AUD). More supportively, the Pound has climbed by over 0.3% against the Russian Ruble (GBP/RUB) and 0.4% against the Omani Rial (GBP/OMR). Yesterday, the Pound rose in value somewhat after a speech from the Bank of England’s Ben Broadbent.

The main UK data of the day has been the UK October Retail Sales results, which have damagingly met with forecasts for declines across the board. The monthly base figure and that Including Auto Fuel have both fallen lower than -0.5%, and the annual variants have both declined on previous printings.

Exchange Rate Forecast: ECB Meeting Account Predicted to Move EUR/GBP Pairing Today

With most of the day’s Eurozone and UK economic releases now out, the only remaining influence on the EUR/GBP pairing is likely to be exerted by the ECB Account of the Monetary Policy Meeting, which is due out this afternoon.

Although the contents of the account cannot be readily predicted, the hot topic in the Eurozone at present is whether or not the ECB will decide to maintain, reduce or expand the current level of quantitative easing that is in place in the Eurozone. The policy is up for review in December, therefore any mention of the possible outcome of the decision is sure to trigger major Euro (EUR) movement.

Current EUR, GBP Exchange Rates

The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7003 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4283 today.