The Euro (EUR) has risen by 0.2% against the Pound Sterling (EUR/GBP) today, with the primary reason being yesterday’s bearish Bank of England (BoE) attitude continuing to affect the Pound (GBP) today.
UK Trade Data may Improve Pound Sterling’s (GBP) Performance Soon if Forecasts are Accurate
The next piece of information likely to affect the EUR/GBP pairing will be the UK Trade Balance figures for September that are due for imminent release; at the time of writing, predictions had been for slight reductions in the UK trade deficit across the board and if these lowerings are exceeded, Sterling (GBP) may yet rise against the Euro (GBP/EUR) today.
The Euro (EUR) has barely made a gain against the Pound Sterling (EUR/GBP) today, primarily on account of today’s German results falling and a -1.1% decline being recorded for the annual UK New Car Registrations in October.
ECB Speech due ahead of BoE ‘Super Thursday’
The next event due to affect the Euro (EUR) will be a speech from European Central Bank (ECB) President Mario Draghi; later on, the Bank of England (BoE) Interest Rate Decision and associated minutes will be the next major influence on the EUR/GBP pairing.
Earlier…The Euro to Pound Sterling (EUR/GBP) exchange rate has declined notably today, mainly due to the day’s range of Eurozone PMIs not providing a solid basis for a Euro (EUR) uptrend.
EUR/GBP Exchange Rate News: Big Eurozone Players swing Misses to Soften Single Currency Today
The Euro (EUR) has declined by -0.4% against the Pound Sterling (EUR/GBP) today, which has made up just one of a number of notable losses today. Elsewhere, the Euro has declined by -0.3% against the Swiss Franc (EUR/CHF) and -0.4% against the Australian Dollar (EUR/AUD) and the US Dollar (EUR/USD). In positive terms, the Euro has trended narrowly against the New Zealand Dollar (EUR/NZD) and the South African Rand (EUR/ZAR).
The primary cause for the poor performance of the common currency has been that the day’s Eurozone data has failed to provide any real cause for optimism among investors; the Italian and French Composite and Service PMIs for October have both risen overall, but both the German and Eurozone variants have declined compared to previous figures, therefore outweighing the previous positive printings.
Today’s UK PMIs Pull Through, Trigger Pound Sterling Uptrend against the Euro (GBP/EUR)
The Pound Sterling (GBP) has risen overall today, owing to an opposite result in the UK’s PMI figures for the day compared to the Eurozone’s. The UK Composite and Services PMIs for October have both risen on previous results, indicating healthy growth in areas that are of particular importance to the UK economy. The former has risen from 53.3 to 55.4, while the latter has grown from 53.3 to 54.9.
The Pound has advanced by 0.5% against the Euro (GBP/EUR), the New Zealand Dollar (GBP/NZD), the Czech Koruna (GBP/CZK), the Turkish Lira (GBP/TRY) and the South African Rand (GBP/ZAR) today, with a gain of 0.8% against the Hungarian Forint (GBP/HUF) being the crowning glory.
EUR/GBP Exchange Rate Forecast: ECB’s Meeting to Provide Last Major Movement before ‘Super Thursday’ Tomorrow
Although a number of Eurozone economic announcements remain for today, the one most likely to be impactful will be this afternoon’s European Central Bank (ECB) Non-Monetary Policy Meeting. Although the very nature of the meeting means that mentions of quantitative easing are unlikely to take place, the ECB will still be discussing their opinions on the future movement of the Eurozone, therefore any decisive tones in an optimistic or pessimistic direction are sure to trigger some movement for the single currency.
The Pound (GBP) will also have central bank-based events happening tomorrow, with the Bank of England (BoE) announcing the result of their Interest Rate Decision, as well as releasing the minutes for this most recent policy choice. Although no change is predicted from 0.50%, the minutes may give some indication as to when the BoE is thinking of once again raising the rate next year. Additionally, the BoE’s Inflation Report is out at the same time to provide further reading for investors in Sterling.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7077 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4132 today.