The Euro (EUR) has retained its lead of 0.4% against the Pound Sterling (EUR/GBP) today after the European Central Bank’s (ECB) interest rate freeze met with predictions.
German Results could Provide Impetus for Euro Rally Tomorrow
The Euro (EUR) has made little movement against the Pound (EUR/GBP) since the ECB announcement was made, although tomorrow may see a repeat of this morning’s upsurge if results are positive.
The German Factory Orders and Retail PMIs are out tomorrow, and any major rises in the fields will likely raise market appreciation of the German economy, and by extension, raise the common currency’s value considerably. At any rate, no decline can be predicted against the Pound (EUR/GBP) due to the lack of major UK data releases out tomorrow.
The Euro to Pound Sterling (EUR/GBP) exchange rate has risen by 0.4% today as a result of the UK Services PMI dropping from 57.4 points down to 55.6; expectations had been for a slight rise up to a score of 57.7.
ECB Dovishness may Damage Common Currency’s Current Gains
The Euro’s (EUR) performance against the Pound (EUR/GBP) later on today may be harmed by the announcements made by the European Central Bank (ECB) regarding the European interest rate.
Although no predictions have been for a rate rise, any sentiments that approach hawkishness in nature will likely offer no small amount of support to the common currency. However, an extension of the ECB’s quantitative easing program may have a more mixed reception, given that this is regarded as a last-resort policy for central banks.
The Euro to Pound Sterling (EUR/GBP) exchange rate has fallen today although the Pound (GBP) has fared little better in a day of few major data releases for both currencies.
EUR/GBP Exchange Rate News: Variety of Eurozone Results triggered Overall Decline Yesterday
The Euro (EUR) has dropped by -0.2% against the Pound Sterling (EUR/GBP) today and has declined against most of its rivals elsewhere. The common currency has fallen by over -0.4% against the Canadian Dollar (EUR/CAD) and the Australian Dollar (EUR/AUD) today and has seen greater losses of -0.7% against the Indian Rupee (EUR/INR) and the New Zealand Dollar (EUR/NZD). The single currency’s only progress towards a gain has been a narrow trend against the Polish Zloty (EUR/PLN).
This lacklustre performance has come from the Eurozone economic results released yesterday; the Italian and French Manufacturing PMIs for August both posted losses, with the French figure showing further contraction below 50 points. Although the German Unemployment Change saw a -7k person drop and the German Manufacturing PMI for August saw a fractional rise, this was unable to counteract the negative effect of the overall Eurozone Manufacturing PMI dropping by -0.1 point.
Pound Sterling to Euro Exchange Rate Rises Slightly amid Similarly Fluctuating UK Results
The Pound Sterling to Euro (GBP/EUR) exchange rate has risen by 0.3% today, although Sterling (GBP) has had a decidedly mixed showing elsewhere. The Pound has risen by over 0.3% against the Romanian Leu (GBP/RON), the Danish Krone (GBP/DKK) and the Hungarian Forint (GBP/HUF), but has dropped against most other currencies with major losses of -0.5% being recorded against the New Zealand Dollar (GBP/NZD) and -1.7% against the Russian Ruble (GBP/RUB).
This has been largely caused by a drop in the UK Net Consumer Credit for July and the UK Markit Manufacturing PMI for August, both of which fell yesterday. As with the Eurozone, there were positive results as well, but also like the Eurozone, the rise from 67.07k to 68.76k in the UK Mortgage Approvals figure for July failed to negate the negative impact of the other results.
EUR/GBP Exchange Rate Forecast: UK Construction PMI Disappointment may Upset Sterling’s Current Lead
The Euro (EUR) stands to rise against the Pound (EUR/GBP) later on today if the UK Construction PMI for August comes in with a negative result, although as of writing the forecast was for a rise from 57.1 to 57.5. Eurozone PPIs are due in later on although predictions for these have been pessimistic.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7377 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3560 today.