The Euro to Pound Sterling (EUR/GBP) exchange rate has fallen by a further -0.2% today, despite the German Consumer Confidence Survey meeting forecast results.
Euro to Pound Sterling (EUR/GBP) Exchange Rate Unchanged, Incoming UK Data may Support Pound’s Rise
The Euro to Pound Sterling (EUR/GBP) exchange rate has fallen for the second day in a row, recording a -0.2% drop. This comes in the aftermath of Yanis Varoufakis’ ‘Drachma Plan’ being revealed, which has rocked confidence in the common currency. However, the Euro has posted a gain of over 0.2% against the Australian Dollar (EUR/AUD) and the New Zealand Dollar (EUR/NZD), indicating a possible rise again for the Euro as crucial Greek bailout negotiations continue.
The Pound Sterling may continue to rise over the Euro today, as incoming UK June Mortgage Approval and Net Consumer Credit figures have been optimistically forecast to increase, which would strengthen the Pound against its rivals.
Despite a bullish advance by the Euro (EUR) yesterday, today has seen a reversal of the common currency’s fortunes, after it was revealed that former Greek Finance Minister Yanis Varoufakis had made plans to return Greece to the Drachma.
Euro (EUR) Exchange Rate Harmed by News at Crucial Negotiation Stage
The Euro recorded losses of over -0.3% against the Pound Sterling (EUR/GBP) and the South African Rand (EUR/ZAR) today, and a worse loss of more than -0.6% against the Australian Dollar (EUR/AUD), the Indian Rupee (EUR/INR) and the New Zealand Dollar (EUR/NZD). This came after Varoufakis’ plan was brought to light, which would have only been put into action if the country seemed in danger of losing the Euro as its currency.
Such a negative reaction to this information illustrates just how fragile and tenuous the Greek bailout negotiations are, and shows that a stable future for the Euro still hangs in the balance as talks continue between the Greek government and its creditors.
The Euro to Pound Sterling (EUR/GBP) exchange rate surged today as the common currency turned bullish against all major rivals, despite July PMI data on Friday showing an overall dip in Eurozone and German Manufacturing and Services.
Euro Trending Strongly against Pound Sterling (EUR/GBP), Canadian Dollar (EUR/CAD), Australian Dollar (EUR/AUD) and South African Rand (EUR/ZAR)
The Euro has made major gains against Pound Sterling (EUR/GBP), the Canadian Dollar EUR/CAD), the Australian Dollar (EUR/AUD) and the South African Rand (EUR/ZAR) today, climbing by more than 1%. This unexpected rise is attributed to news about the Greek Debt Crisis; after a month of closure, the Greek stock market may be reopening as early as Tuesday.
More significantly, the ‘Troika’ (the European Central Bank (ECB), the International Monetary Fund (IMF) and the European Commission) are due to discuss the possible Greek bailout today, and observers are optimistic that they will grant the nation some much-needed aid ahead of the next deadline in the Greek repayment calendar (August 20th).
Pound Sterling (GBP) Movement Forecast with UK GDP Data Impending, Canadian Dollar (CAD) has Mixed Results
The Pound Sterling (GBP) exchange rate has fallen against most major currencies today in the lull before the year-on-year (YoY) and quarter-on-quarter (QoQ) UK GDP data is released tomorrow. The quarterly predictions suggest an optimistic increase of 0.3%, with growth of 0.7% predicted, but the forecast yearly reduction of -0.3% appears to have overridden the positive impact of quarterly growth, seeing the GBP post losses of over -1% against the Euro (GBP/EUR), the Danish Krone (GBP/DKK), and the Romanian Leu (GBP/LEU).
The Canadian Dollar (CAD) has seen gains against the US Dollar (CAD/USD) and Pound Sterling (CAD/GBP) of more than 0.4%, but has also fallen against the Euro (CAD/EUR) by over -0.7%, reflecting the uncertainty surrounding the ‘Loonie’ prior to the release of Canada’s month-on-month (MoM) and YoY GDP Data for May on Friday, which has been predicted to show a 0.1% gain and a -0.4% loss respectively.
Euro to Pound Sterling Forecast: Euro may continue to Gain in EUR/GBP Exchange Rate
Both the Pound Sterling (GBP) and the Euro (EUR) have data set for release today, but unless the Greek bailout talks experience (another) setback, it seems likely that the Euro will continue to enjoy an overall uptrend against its competitors, at least for the next few days. The Pound may upset proceedings tomorrow, however, if the GDP data is better than expected, in which case the GBP would likely reverse its current downtrend against its rivals.
Current GBP, EUR, CAD Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4004, the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending in the region of 2.0178, the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7144, the Euro to Canadian Dollar (EUR/CAD) exchange rate was trending in the region of 1.4412, the Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate was trending in the region of 0.4961, and the Canadian Dollar to Euro (CAD/EUR) exchange rate was trending in the region of 0.6943 today.