The Euro to Pound Sterling (EUR/GBP) exchange rate has been highly favourable today, seeing a 0.6% gain, and greater gains against other rivals for the Euro (EUR).
Euro to Pound Sterling (EUR/GBP) Exchange Rate News: Euro (EUR) enjoys Stable Gains after a Week of Turmoil
The Euro (EUR) has risen by over 0.8% against the South African Rand (EUR/ZAR) and the Australian Dollar (EUR/AUD) today, and has also risen hawkishly against the New Zealand Dollar (EUR/NZD) by 1.2%. Significant gains were also made over the Pound Sterling (EUR/GBP) and the Canadian Dollar (EUR/CAD), where the common currency gained 0.6%.
This comes after the Eurozone Consumer Price Index saw a 0.2% increase today, a positive inflation figure that offset the effects of a -2.3% dip in monthly German Retail Sales for June and the unchanged June Eurozone Unemployment Rate of 11.1%. This uptrend for the Euro is a welcome change from earlier in the week, when the common currency dived following the revelation of former Greek Finance Minister Yanis Varoufakis’ ‘Drachma Plan’.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Dips following Loss of Consumer Confidence
The Pound Sterling (GBP) has had a mixed performance today, seeing a fall of -0.6% against the Euro (GBP/EUR) and the Hungarian Forint (GBP/HUF), and a greater -0.8% decline against the Swiss Franc (GBP/CHF). On the other end of the scale, however, the Pound has risen by 0.9% against the New Zealand Dollar (GBP/NZD) and by a hawkish 2.1% against the volatile Russian Ruble (GBP/RUB).
This fluctuation in losses and gains for the Pound can be attributed to the results of the GFK Consumer Confidence Survey, which showed a drop from 7 points down to 4 this month, a worse result than forecast.
Euro to Pound Sterling Exchange Rate Forecast: Potential for Major GBP/EUR Gains following BoE Meeting
Next week brings major data releases for the UK and the Eurozone, both of which have to potential to trigger swings in the balance that currently favours the Euro (EUR). Positive growth in the Eurozone June Retail Sales figures (released on Wednesday) will increase the current glut of confidence in the Euro, and this could be further aided by signs of growth in the German and Eurozone PMIs for July, released on Thursday.
The Pound Sterling (GBP) may have the overall advantage next week, however. The Bank of England (BoE) policymakers are due to meet next Thursday to discuss the UK interest rate, and although an immediate rate hike is highly unlikely, any signs that members of the group are considering an increase later this year are sure to strengthen the Pound against the competition. The Pound also has the added benefit of not swinging to-and-fro based on the developments in Greece, a trait the Euro unfortunately doesn’t share.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7045 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4199 today.