The Euro to Pound Sterling (EUR/GBP) exchange rate softened by around -0.33% on Wednesday morning.
After British economic data produced a mixed-bag of results, the Pound edged lower versus most of its peers. Whilst Industrial Production grew beyond expectations, Manufacturing Production failed to meet with forecast output. The Gross Domestic Product Estimate and Mansion House speeches will likely provoke Sterling volatility.
The Euro, meanwhile, softened versus many of its rivals as Greek Prime Minister Alexis Tsipras meets with Eurogroup officials in Brussels to discuss the latest reform proposal. Most analysts don’t expect much progress from the meeting given analysts have stated that the latest proposal is just a rehash of previous drafts.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trending in the region of 0.7319.
The Euro to Pound Sterling (EUR/GBP) exchange rate advanced by around 0.31% on Tuesday morning.
In response to Eurozone growth data meeting with median market forecast figures, the shared currency strengthened versus many of its peers. Aiding the common currency uptrend was the fact that Greece has resubmitted fresh reforms in the hopes of unlocking vital bailout funds.
The Pound, meanwhile, softened versus most of its major competitors despite seeing the trade deficit narrow. The depreciation can be linked to news that HSBC will be cutting 8,000 British jobs and moving their headquarters away from the UK.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trending in the region of 0.7374.
Euro (EUR) Exchange Rate Forecast to Advance versus the British Asset after Greece Submits Reforms
Second-estimates for Eurozone growth met with median market forecast figures, causing the shared currency to appreciate. Eurozone Gross Domestic Product met with the market consensus of a 1.0% first-quarter increase on the year and a 0.4% increase on a quarterly basis. Household demand and investment were the biggest contributors to Eurozone economic growth in the first-quarter.
Additional Euro gains can be linked to Greece having submitted a fresh reform proposal to the European Commission. With time running out for Greece to secure funds, much rests on the new proposal. However, many are now speculating that Greece will be given an extension to its bailout deal if the nation fails to indulge creditors’ requirements before the end of the month.
The Euro to Pound Sterling (EUR/GBP) exchange rate dropped to a low of 0.7349 today.
Pound Sterling (GBP) Exchange Rate Forecast to Soften versus the Common Currency as HSBC Cuts Jobs
Despite relatively positive trade balance data, which saw the UK trade deficit narrow in April, the Pound softened versus many of its closest rivals. Total Trade Balance, Trade Balance Non EU and Visible Trade Balance all bettered respective market consensuses.
Much of the Pound’s declination can be attributed to news from HSBC, Europe’s largest bank, that they will be cutting 8,000 British jobs in an attempt to reduce costs and simplify the business. The institution is also looking to move its headquarters away from the UK. BBC business editor Kamal Ahmed said the UK job cuts would come as a shock to staff: ‘Global banking now is a far tougher business than it was pre-the financial crisis. It is hard to get profits.’ Mr Gulliver was ‘running a bank that investors believe simply doesn’t make enough money,’ he added.
Euro to Pound Sterling (EUR/GBP) Exchange Rate Forecast to Hold Gains on Lack of Data
Given the absence of further domestic data publications to provoke changes, the Euro to Pound Sterling (EUR/GBP) exchange rate is likely to hold gains for the remainder of Tuesday’s European session. With that being said, however, any sign that Greece’s proposal will not be accepted is likely to drive the common currency down.
Wednesday could see heightened EUR/GBP volatility with several British data publications due for release. A complete absence of European data is likely to see geopolitics driving trade.
The Euro to Pound Sterling (EUR/GBP) exchange rate climbed to a high of 0.7390 today.