The Euro to Pound Sterling (EUR/GBP) exchange rate is trending within a narrow range on Friday morning.
As traders await the Eurogroup meeting, which aims to find a utilitarian resolution to Greece’s debt crisis, the Euro is generally softer versus most of its major peers. A positive set of domestic data publications had minimal impact with fears of a Grexit dominating trader focus.
The Pound Sterling, meanwhile, is trending lower versus many of its major rivals after domestic data printed poorly. Further declination is as a result of traders locking in profits after Thursday’s surge opened some attractive selling positions.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trending in the region of 0.7374.
Euro (EUR) Exchange Rate Edges Lower despite Positive Data
As explained above, the forthcoming meeting between European finance ministers to attempt to find a solution to Greece’s debt crisis is dominating trader focus. Positive domestic data had minimal impact on Euro movement for this reason.
German Services PMI saw preliminary growth of 53.5, rising from the previous figure of 52.7 and eclipsing the median market forecast of 53.0. The preliminary figure for German Manufacturing PMI equalled the previous figure of 50.9 but failed to meet with expectations of growth to 51.5. In addition, the flash German Composite PMI bettered market predictions of a rise from 53.5 to 54.0, with the actual result reaching 54.3.
Similarly, Eurozone Services and Composite PMIs bettered estimates, but the region’s Manufacturing PMI failed to meet with expectations. Commenting on the Eurozone flash PMI data, Chris Williamson, Chief Economist at Markit said: ‘February’s PMI surveys paint an upbeat picture of improving Eurozone economic health. Undeterred by the ongoing Greek debt crisis, economic growth is gathering momentum and looks set to gain further traction in coming months. The economy is on course to grow by at least 0.3% in the first quarter, assuming March doesn’t disappoint.’
The Euro to Pound Sterling (EUR/GBP) exchange rate dropped to a low of 0.7339 today.
Pound Sterling (GBP) Exchange Rate Softens on Disappointing Data
In contrast to the Eurozone’s reports, British data printed poorly, which caused the Pound to soften versus most of its major peers. However, with sentiment towards the Bank of England (BoE) increasingly positive, the declination has been minimal.
Public Finances, Public Sector Net Borrowing, Retail Sales ex Auto and Retail Sales including Auto all declined beyond expectations. The Office for National Statistics said of the British retail sales data; ‘There was a significant increase in the quantity bought in petrol stations and department stores but this did not negate the downwards pressure from predominantly food stores, textile, clothing and footwear and other stores.’
Euro to Pound Sterling (EUR/GBP) Exchange Rate Forecast to Hold Steady ahead of Eurogroup
With so much resting on the shoulders of the European finance ministers convening in order to find an amicable solution to Greece’s debt crisis, the Euro to Pound Sterling (EUR/GBP) exchange rate is likely to continue trending within a tight range. Should the Eurogroup fail to find a resolution, the Euro could tumble across the board.
The Euro to Pound Sterling (EUR/GBP) exchange rate climbed to a high today of 0.7381.
