The Euro (EUR) has fallen by -0.6% against the Pound Sterling (EUR/GBP) today; although the UK Construction PMI for August failed to meet with expectations, it still showed growth of 0.2 points.
Equal Opportunity for Gains Tomorrow as ECB Interest Rate Decision and UK Services Results In
The Euro (EUR) has the potential to gain against the Pound Sterling (EUR/GBP) tomorrow if the European Central Bank (ECB) makes any hawkish remarks tomorrow regarding an interest rate rise, although expectations are for no change and given recent Eurozone results, this seems likely to be an accurate forecast. Nonetheless, any dissention over the decision could raise some degree of support for the common currency.
However, earlier in the day, the UK Services PMI is due for release. Given that tourism is a key component of the UK economy (as well as the optimistic forecast and the time of year), the figure may very well rise, which as a solid result could eclipse potentially vaguer sentiments from ECB members.
The Euro (EUR) has maintained its lead against the Pound Sterling today after the Eurozone Unemployment Rate for July dropped from 11.1% to 10.9%.
US Manufacturing Data may Diminish Common Currency’s gains Later On
The Euro (EUR) has been greatly supported by the drop in the Eurozone unemployment rate, however slight it is. The continuing uptrend by the common currency against the Pound (EUR/GBP) is expected to last until tomorrow when the UK Construction PMI for August is announced; forecasts have been for a marginal gain, therefore any movement in the opposite direction may further the Euro’s current position of advantage in the pairing.
The Euro to Pound Sterling (EUR/GBP) exchange rate has risen today as Euro-confidence expands to levels unseen during last week’s unrest.
EUR/GBP Exchange Rate News: Stagnant Inflation Failed to Dampen Common Currency Demand Yesterday
The Euro (EUR) has advanced on the Pound Sterling (EUR/GBP) by 0.7% today, just one of many gains for the single currency this morning. The Euro’s only loss today has been a narrow trend against the Japanese Yen (EUR/JPY), but elsewhere the common currency has risen by over 0.8% against the Australian Dollar (EUR/AUD), the US Dollar (EUR/USD) and the South African Rand (EUR/ZAR) and has seen a more substantial rise of 1.2% against the Canadian Dollar (EUR/CAD).
This comes after the Eurozone annual non-core and core CPIs for August failed to decline as forecast. The Euro consolidated gains despite both the final Italian and French Manufacturing PMIs showing negative revisions. A drop in the German Unemployment Change figure for August has contributed to the Euro’s overall strong performance today.
Bank Holiday resulted in Poor Showing for GBP/EUR Exchange Rate Yesterday
The Pound Sterling (GBP) has dropped by -0.7% against the Euro (GBP/EUR) today and has seen scant gains elsewhere on a fairly negative day for the British currency. The Pound has dropped by over -0.7% against the Czech Koruna (GBP/CZK) today, along with the Danish Krone (GBP/DKK) and the Japanese Yen (GBPJPY). Although Sterling has fared poorly elsewhere, rises of over 0.7% have been recorded against the Mexican Peso (GBP/MXN) and the Norwegian Krone (GBP/NOK).
There were no UK data releases yesterday owing to the bank holiday, so the Pound was naturally unable to make any major gains of its own volition. Over the weekend, Bank of England (BoE) Governor Mark Carney stated at the Jackson Hole Symposium that last week’s stock market meltdown had not affected the BoE’s plans regarding a UK interest rate increase, but this had little impact as the BoE has only made nebulous statements about when and by how much a rate hike would be. Although positive results have been recorded in the UK Mortgage Approvals figures for July, this has failed to uplift the Pound against its rivals.
EUR/GBP Exchange Rate Forecast: Eurozone Unemployment may Widen Current Pairing Gap
The Euro (EUR) is expected to continue rising against the Pound Sterling (EUR/GBP) and other currencies today if the Eurozone Unemployment Rate for July shows even a minor drop, given that predictions are for stagnation. Even with no change, the Euro is unlikely to drop against the Pound (GBP) as Greece has ceased to be a troubling factor for the time being, given the presence of a new, ‘safe’ caretaker government until the September 20th election.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7371 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3573 today.