The Euro (EUR) has risen by 0.6% against the Pound Sterling (EUR/GBP) today; this is a stark reversal of the stagnant performance seen in the pairing earlier in the day.
Further Eurozone News to be only ‘Swing’ Factor in Pairing ahead of Quiet News Day
The Euro (EUR) has benefitted most in the pairing from the news today that negotiations on the UK’s position in the European Union (EU) have hit a barrier thanks to a lack of clarity and consideration, according to French Economic Minister Emmanuel Macron. Speaking on the issues faced by EU members regarding the ‘give-and-take’ of politics, Macron said ‘The refugee situation is probably one of the best possible examples – an a la carte Europe is not feasible because it just means progressively you kill the European idea and the functioning of Europe’.
No notable releases are due from the UK or the Eurozone tomorrow, so further ‘Brexit’ news or perhaps a statement from Chancellor George Osborne on his return from China are the only likely occurrences to have an impact on the pairing before the European trading session closes tomorrow.
The Euro (EUR) has risen by 1% against the Pound Sterling (EUR/GBP) today, something that can be mainly attributed to the internal watchdog established by Bank of England (BoE) Governor Mark Carney failing to show any activity whatsoever in its first year.
First Strike will come from Germany Tomorrow, although ‘Own Goal’ may be more Appropriate
While the Euro (EUR) has risen against the Pound Sterling (EUR/GBP) today, it has mostly been due to discontent over the Pound (GBP) rather than any cause for real optimism coming out of the Eurozone. The much-touted PMIs of the morning resulted in German and Eurozone figures posting worse than expected and the unexpected French positivity wasn’t enough to offset the detrimental effect of the weightier results.
Tomorrow, a number of German Confidence Assessments are out, although as all four publications have a predicted decline attached to them, it is entirely possible that these results will destroy confidence in the Euro and send it back down against the Pound.
The Euro to Pound Sterling (EUR/GBP) exchange rate has risen today although ongoing concerns surrounding European Central Bank (ECB) policy mean that the common currency (EUR) has been unable to reach its full potential.
EUR/GBP Exchange Rate News: Swings and Roundabouts – Greek Political Security Offset by ECB QE Concerns
The Euro (EUR) has risen by 0.3% against the Pound Sterling (EUR/GBP) today, although due to mitigating circumstances, the Euro has made mostly minor gains against its rivals today. This constitutes advances of 0.2% against the Indian Rupee (EUR/INR) and 0.6% against the South African Rand (EUR/ZAR), while losses have been represented most strongly by a -0.5% drop against the Japanese Yen (EUR/JPY).
The Euro has been helped and hindered by Eurozone announcements in equal measure this week; the re-election of Alexis Tsipras as the Greek Prime Minister on Sunday granted a slight boost to Euro support, but an analysis of the ECB’s current methods by Bank of Italy (BoI) Chief Economist Eugenio Gaiotti has called into question the ECB’s reaction times and judgement regarding economic policy.
Speaking yesterday, Gaiotti said: ‘We assess that downside risks for medium-term growth and inflation have increased…at this juncture I would consider it mostly important not to fall behind the curve. It is crucial to avoid lower potential growth igniting a deflationary spiral, and this falls fully in the mandate of central banks’.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Crumbles as UK Borrowing Increases above Estimates
The Pound Sterling (GBP) has fallen by -0.4% against the Euro (GBP/EUR) today and has seen greater losses elsewhere. Overall, the Pound has slumped today following the revelation that the two Public Sector Net Borrowing results for August had both shown increases in the amount borrowed by the government; this naturally equated to an expansion of UK debt. As a minor positive to the UK results today, the Public Finances figure for August showed that a -£0.2bn reduction of the deficit had occurred.
The Pound has fallen by over -0.3% against the US Dollar (GBP/USD), the Russian Ruble (GBP/RUB), the Hungarian Forint (GBP/HUF) and the Japanese Yen (GBP/JPY) today; the only major gain has been by 0.3% against the South African Rand (GBP/ZAR).
EUR/GBP Exchange Rate Forecast: Eurozone Confidence Score to be Last Decider before Eurozone PMIs Tomorrow
For the rest of the day, the Pound Sterling (GBP) only has the Confederation of British Industry (CBI)’s Trends Selling Prices and Total Orders for September to rely upon. The low-impact nature of these results means that they are unlikely to sway the Pound significantly in the GBP/EUR pairing, therefore the Eurozone Consumer Confidence score for September is the next big event in the pairing’s exchange rate. Predictions are favourable for Sterling; a decline from -6.9 points to -7 is expected.
Current GBP, EUR Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7233 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3826 today.