The Euro (EUR) has maintained its rise against the Pound Sterling (EUR/GBP) today after the German Unemployment data gave no cause to doubt Eurozone confidence.
German Unemployment Rate Stagnation is offset by Negative Change
The Unemployment Rate for August remained unchanged at 6.4% (as predicted), but going against the forecast drop of -4K persons in the Unemployment Change figure for the same month, a -7K drop was recorded for the German result. This positive outcome has not been hampered by the French and Italian Manufacturing PMIs for August, which both showed losses in their industries.
The Euro (EUR) has risen by 0.7% against the Pound Sterling (EUR/GBP) today, a clear sign that Eurozone confidence is back on a high after the events of last week.
German Employment Figures may further Common Currency’s Gains
The Euro (EUR) has risen in value today, a continuation of the positive performance that it experienced at the end of last week. Despite the Eurozone inflation rate not rising yesterday, it also failed to fall as predicted, which likely gave a net rise in optimism to the single currency.
The Euro stands to gain further in the immediate future if the German Unemployment Rate and Change figures for August drop considerably.
The Euro to Pound Sterling (EUR/GBP) exchange rate is likely to rise today if the Eurozone annual inflation rates come in higher than forecast.
EUR/GBP Exchange Rate News: Marketplace Meltdown Last Week made Euro See-Saw in Performance
The Euro to Pound Sterling (EUR/GBP) exchange rate showed an incredibly varied performance last week after the global stock market crash caused both joy and despair for speculators of the common currency. The Euro rose astronomically on Monday after global stock markets crashed; the primary reason for this was the huge blow that the US Dollar (USD) received to its confidence. Speculation had been rife about a Federal Reserve interest rate hike the week before, but it seemed as though the plunge in value for the ‘Greenback’ was the nail in the coffin for a possible September rise.
From Tuesday to Thursday, however, the Euro completely reversed its faring, diving across the board. This was accompanied by a number of positive US data releases and a general improvement of market conditions. On Friday, global stock markets were relatively close to their state before ‘Black Monday’, so the Euro resumed the dominant status it had shown at the end of the previous week. The single currency was still hampered in its growth by the German CPI figures though, as these showed either fractional gains or stagnation in the inflation rate.
Pound Sterling followed inverse Path in GBP/EUR Pairing Last Week
The Pound Sterling (GBP) followed a virtually opposite route to the Euro (EUR) last week; although the Pound crashed like other formerly stable currencies on Monday, it failed to properly recover by Friday, instead continuing to perform poorly against the rallying commodity and emerging-market currencies. Gains were recorded, but these were few and far between on a week to forget for Sterling supporters.
The UK Q2 GDP result that came out on Friday didn’t help the Pound’s prospects; although the figures showed growth, they only met with expectations instead of exceeding them. Despite a number of other simultaneous UK data releases showing growth in the UK economy, the Pound failed to make any major headway against the Euro (GBP/EUR).
EUR/GBP Exchange Rate Forecast: British Bank Holiday Puts Ball in Euro’s Court
The Euro stands to gain significantly over the Pound today if the Eurozone annual inflation rate results come in positively; as it stands, forecasts are for a drop of -0.1%, therefore a major positive result in these areas would likely swell support for the common currency.