The Euro (EUR) has risen by 0.2% against the Pound Sterling (EUR/GBP) today, something brought on by UK Referendum concerns crippling the appeal of the Pound (GBP).
German PP Data Due on Monday Ahead of UK CBI Figures
The next movement in the pairing is likely to come from the Eurozone side of things, with the release of the German Producer Price results for November on Monday morning. Although no forecasts had been made at the time of writing, previous results were in negative ranges on the month and the year.
For the Pound (GBP), the Confederation of British Industry (CBI) Reported Sales for December are due out shortly afterwards and were predicted positively as of writing.
The Euro to Pound Sterling (EUR/GBP) exchange rate has fallen by a marginal amount today, but most of the common currency’s other exchange rate movements have been in a downwards direction.
EUR/GBP Exchange Rate News: German Economic Pessimism Combines with Fed Decision to Push Euro Down
The Euro (EUR) has made little positive movement against its currency peers today, with declines being fairly widespread for the single currency. Among these losses have been a minor dip against Pound Sterling (EUR/GBP) and falls of -0.2% against the US Dollar (EUR/USD), -0.3% against the Indian Rupee (EUR/INR) and -0.5% against the South African Rand (EUR/ZAR). The only real gain has been a 0.2% increase against the Swiss Franc (EUR/CHF).
The main reason for the Euro dropping off today has been that the Fed’s decision to raise the US interest rate for the first time in almost ten years yesterday has made the US Dollar (USD) more appealing and subsequently pushed down investor interest in the Euro. In addition, German IFO Expectations for December have failed to meet expectations in all three categories.
Pound Sterling (GBP) Similarly Soft Today as David Cameron Meets with EU Leaders
The Pound Sterling (GBP) has fared little better than the Euro today, with many losses being recorded in its exchange rates. Among these have been -0.2% against the Australian Dollar (GBP/AUD), -0.3% against the Japanese Yen (GBP/JPY) and -1.2% against the Norwegian Krone (GBP/NOK). This represents a continuation of yesterday’s uninspiring Sterling movement.
Although today’s UK Retail Sales figures for November have exceeded forecasts in all fields, the Pound has nonetheless remained low due to the ongoing situation in Brussels, where Prime Minister David Cameron is meeting with the heads of the European Union to negotiate on his plans for reform in the UK-EU relationship. The general outlook on the situation has not been optimistic, with observers citing the opposition of nations such as France and Germany to the 4-year freeze for UK migrant benefits being a major bone of contention.
EUR/GBP Exchange Rate Forecast: UK CBI Results likely to cause Further Movement Today
Relatively few economic releases are left to come from the Eurozone or the UK before the weekend, but one of the remaining sets of data due today will come from the latter area.
The Confederation of British Industry (CBI) Trends for Selling Prices and Total Orders in December are due out imminently, although at the time of writing the only forecast made was a pessimistic movement from -11 points to -10 for the Total Orders printing.
The last notable piece of Eurozone data for the week will be tomorrow’s Current Account results for October; as of writing, no forecasts had been made for the outcomes.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7263 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3770 today.