Euro to Pound Sterling (EUR/GBP) Exchange Rate Advances 0.2%
Hopes that Greece will agree to a six-month extension of its current bailout programme lent the Euro support this morning, as did bets that today’s Consumer Confidence report for the Eurozone will show improvement.
By extending its bailout, Greece gives itself more time to renegotiate its terms – reducing the likelihood of the nation exiting the currency bloc.
In the hours ahead, any developments in the Greek situation could cause Euro movement.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trading in the region of 0.7398
EUR/GBP Exchange Rate Falls to 0.7384
After gaining on the back of a lower-than-forecast UK non-core inflation figure, the Euro to Pound Sterling (EUR/GBP) currency pair gave up its advance on Wednesday.
A UK employment gain of more than 100,000 positions in the three months through December saw the nation’s unemployment rate decline to 5.7%.
Average weekly earnings were also up 2.1% year-on-year, bettering expectations for a figure of 1.7%.
While the Pound was broadly supported by these figures, demand for the Euro was undermined by a poor Construction Output figure for the Eurozone.
The Euro to Pound Sterling (EUR/GBP) exchange rate registered a decline of 0.6%.
EUR/GBP Exchange Rate Could Climb Higher if UK Jobs Data Misses Forecasts
The Euro to Pound Sterling (EUR/GBP) exchange rate was riding high on Tuesday thanks to positive economic sentiment reports for Germany and the Eurozone.
The Pound also eased lower against the majority of its most traded currency counterparts as investors bet that the Bank of England (BoE) will delay hiking interest rates until inflation picks up.
If tomorrow’s UK employment figures impress (showing a stronger-than-expected increase in positions or a decline in the unemployment rate) Sterling could recoup losses.
However, disappointing data would put the Pound under pressure.
Tomorrow’s Eurozone Construction Output figures may also impact the EUR/GBP currency pair.
The Euro to Pound Sterling (EUR/GBP) currency pair is currently trading in the region of 0.7426
EUR/GBP Exchange Rate up 0.3%
The Euro to Pound Sterling (EUR/GBP) exchange rate declined on Monday evening as a gathering of European officials failed to progress the Greek debt negotiations and concluded in record time.
As Greece is no closer to reaching an accord with its creditors, the Euro softened against several of its most traded currency counterparts.
However, the common currency later recouped 0.3% against the Pound and managed to hold these gains as the UK’s Consumer Price Index showed that the pace of non-core inflation slowed by more-than-expected – coming in at 0.3% on the year in January instead of 0.4%.
The Euro was also supported by Germany’s ZEW surveys.
The Economic Sentiment measure advanced from 48.4 in January to 53.0 in February (a slightly lower figure than forecast) while the Current Situation Index surged from 22.4 to 45.5.
The Eurozone’s own Economic Sentiment gauge advanced to 52.7 from 45.2.
After the reports were published the Euro to Pound Sterling (EUR/GBP) exchange rate was trading in the region of 0.7403
EUR/GBP Exchange Rate Holds Gain, Surplus Widens
The Euro to Pound Sterling (EUR/GBP) exchange rate extended its gain to 0.4% following the publication of the Eurozone’s trade balance data.
The report showed that the currency bloc’s trade surplus was wider-than-anticipated in December thanks to an 8% annual surge in exports.
The Eurozone posted a surplus of 24.3 billion Euros, defying expectations of 20.5 billion.
After the data was published the Euro to Pound Sterling (EUR/GBP) exchange rate was trading in the region of 0.7417
Any announcements emerging from the Eurogroup gathering are liable to have an impact on the direction taken by the EUR/GBP pairing.
Later in the European session the EUR/GBP exchange rate pared gains to trade in the region of 0.7408.
The Euro to Pound Sterling (EUR/GBP) exchange rate could rebound from a seven-year low later today if the Eurogroup gathering yields positive results.
EUR/GBP Exchange Rate Climbs over 0.25%
After trending at a multi-year low for much of last week, the Euro to Pound Sterling (EUR/GBP) exchange rate posted a modest gain on Monday amid hopes that weeks of uncertainty surrounding the Greek debt situation might finally be resolved.
Although last Wednesday’s gathering of finance ministers failed to yield any results, officials have pledged that this round of talks will bear fruit.
If the Eurogroup reaches an accord that satisfies both Greece and its creditors, ‘Grexit’ fears will fade and the Euro is likely to surge against its rivals.
The Euro to Pound Sterling (EUR/GBP) exchange rate hit a low of 0.7388
Over the weekend Greek Prime Minister Alexis Tsipras commented; ‘We’re looking at difficult negotiations on Monday. Nevertheless, I’m full of confidence.’
The EUR/GBP currency pair was little affected by the day’s only UK data release, the nation’s Rightmove House Price report.
The data showed that house prices increased by 2.1% in February, month-on-month, following an increase of 1.4% in January.
On the year, house prices climbed 6.6% – down from January’s annual figure of 8.2%.
Euro to Pound (EUR/GBP) Exchange Rate Forecast
While much of today’s EUR/GBP movement will be dictated by the Eurogroup discussion, investors will also be taking an interest in the Eurozone’s trade balance figures.
Tomorrow Euro to Pound Sterling (EUR/GBP) exchange rate movement could be caused by the UK’s Consumer Price Index.
The annual pace of non-core inflation came in at 0.5% in December and economists have forecast a figure of 0.4% in January.
However, should CPI fall by more than this, or even edge into negative territory, the Pound could come under serious strain.
The Euro to Pound Sterling (EUR/GBP) exchange rate hit a high of 0.7414
That being said, given that much of the drop off in inflation has been due to sliding oil prices, if the core figure (which strips out volatile factors like energy and fuel) prints strongly, the Pound may be able to hold its own.
The ZEW Economic Sentiment surveys for Germany and the Eurozone will also have an impact on EUR/GBP trading, as will Germany’s Current Situation index.
Germany’s Economic Sentiment gauge is expected to rise from 48.4 to 55.0 – an improvement which would be Euro supportive.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3496
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1417
The US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.8758
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7407