The Euro (EUR) has made no progress against the Pound Sterling (EUR/GBP) today, mainly due to investor anxieties over the impending Eurozone economic release.
Eurozone CPIs could Seal Further QE from ECB Tomorrow
At the time of writing, forecasts were positive for both the Core and Estimated annual results, but any deviation from these predictions in a downwards direction could be disastrous for the value of the single currency in the near future.
The Euro (EUR) has trended narrowly in a positive range against the Pound Sterling (EUR/GBP) today, mainly on account of the German Unemployment Rate for November falling from 6.4% to 6.3%.
UK Manufacturing Data Imminent, EUR/GBP Exchange Rate Movement Likely
The Euro (EUR) is likely to moved by further Unemployment Rate data in the near future, in the form of the overall Eurozone result. Ahead of this, however, will be the UK Manufacturing PMI for November, which is expected to decline from 55.5 to 53.6.
The Euro to Pound Sterling (EUR/GBP) exchange rate has fared poorly so far today, mainly due to the negative influence that has come from the day’s only major Eurozone data so far.
EUR/GBP Exchange Rate News: German Economic Releases Dishearten Investors Today, Euro Softens
The Euro (EUR) has trended narrowly in a negative range against the Pound Sterling (EUR/GBP) today, which has been just one of a number of declines for the common currency. The Euro has also fallen by -0.4% against the New Zealand Dollar (EUR/NZD) and the South African Rand (EUR/ZAR) along with -0.6% against the Indian Rupee (EUR/INR). The only notable gain for the single currency has been by 0.2% against the Canadian Dollar (EUR/CAD).
The Euro has been struggling today for two major reasons. The first is that the day’s German Retail Sales figures for October have both fallen against forecasts; the monthly figure has dropped from 0% to -0.4%, while the annual printing has slowed down from 3.5% to 2.1%. This disappointment coming from German data is something of a repeat from last week’s Euro exchange rate movement.
The other influence is that the European Central Bank (ECB) will be holding its December Policy Review on Thursday this week, which could result in an extension of the ECB’s quantitative easing.
Narrow Trending for Pound Sterling (GBP) Spot Rate Today as Lending Figures Have Little Impact
The Pound Sterling (GBP) has risen marginally against the Euro (GBP/EUR) today, with an overall narrow trending in most of the other Sterling pairings. The Pound has fallen by -0.3% against the New Zealand Dollar (GBP/NZD), -0.4% against the Israeli New Shekel (GBP/ILS) and -0.5% against the Indian Rupee (GBP/INR). On the other hand, Sterling has risen by 0.2% against the Turkish Lira (GBP/TRY) and 0.9% against the volatile Russian Ruble (GBP/RUB).
Today’s only UK domestic data has come out to a quiet reception from investors today. The October Net Consumer Credit result has declined marginally from 1.3bn to 1.2bn, while the Net Lending Secured on Dwellings for the same month has remained at 3.6bn instead of falling to 3.4bn as had been forecast. The UK October Mortgage Approvals have risen but not in line with predictions, hitting 69.6k from 69k instead of 69.9k.
EUR/GBP Exchange Rate Forecast: Optimistically Predicted German CPI Figures Due This Afternoon
The Euro (EUR) will continue to be the driving force in the EUR/GBP pairing today, with the release of further German data this afternoon. The German Inflation Rate results for November are due out and at the time of writing, forecasts were optimistic across the board. The base annual figure is expected to rise from 0.3% to 0.4%, while the EU Harmonised yearly result is predicted to rise from 0.2% to 0.3%.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7048 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4191 today.