The Euro (EUR) is trending in a narrow range against the Pound Sterling (GBP) today, as the situation in Greece remains a burden on the Euro’s overall performance.
Pound to Sterling (GBP/EUR) Exchange Rate likely to Rise if BoE MPC Members Dissent
The Euro’s (EUR) poor performance today is a continuation of yesterday’s decline, which occurred after the National Institute of Economic and Social Research (NIESR) published an analysis of the Greek debt crisis. The document concluded that there was little hope for Greece remaining in the Eurozone, unless extreme levels of debt-relief were implemented. This comes after the value of stocks in Greek banks fell close to -30% for the third day in a row, after the Athens stock exchange (Athex) reopened on Monday.
It seems probable that the Pound Sterling (GBP) will gain significantly against the Euro today, as the Bank of England (BoE) Monetary Policy Committee (MPC) will reach a decision on the UK interest rate. Although an interest rate increase is not expected today, any signs that MPC voters are divided on the matter will strengthen opinions that an interest rate hike will take place later this year, and therefore strengthen the Pound.
The Euro to Pound Sterling (EUR/GBP) exchange rate has dropped today after an analysis of the ongoing debt crisis in Greece predicted that approximately €100bn needs to written off to keep Greece out of an economic depression.
Euro (EUR) falls across the Board after Damning Analysis Forecasts 2-year Greek Recession
The Euro (EUR) has fallen against all major rivals today, after the National Institute of Economic and Social Research (NIESR) published an analysis of the Greek debt situation that has called into question the validity of any future attempts at reducing Greece’s debt mountain. The Euro saw losses of -0.3% against both the Pound Sterling (EUR/GBP) and the Canadian Dollar (EUR/CAD), and saw a greater fall of -0.4% against the Polish Zloty (EUR/PLN).
The report has only been accompanied by worse news for the Eurozone; monthly and yearly Retail Sales figures for June saw a drop from 0.1% to -0.6%, and a fall from 2.6% to 1.2% respectively.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently in favour of the Euro (EUR) after both the UK and Eurozone economies published data that was less than optimal.
Euro to Pound Sterling Exchange Rate News: Slight Gains in EUR/GBP Pairing, Poor Performance Elsewhere for Common Currency
The Euro (EUR) has gained by 0.2% against the Pound Sterling (EUR/GBP) today after PMI data for the UK and PPI data for the Eurozone fell below predicted results. The Euro fell by more than -0.4% against the Indian Rupee (EUR/INR) and the New Zealand Dollar (EUR/NZD) today, and saw a greater loss of -1.4% against the uptrending Australian Dollar (EUR/AUD).
The Euro has trended in a narrow range elsewhere and this reduced performance is likely due to the worse-than-expected results for the Eurozone monthly and yearly Producer Price Index for July, which has seen a decline of -0.1% for the former figure and a -2.2% drop for the latter. The Greek situation also remains a hindrance on the Euro’s value, as when the Athens stock exchange (Athex) reopened yesterday, it promptly crashed and sent shares in Greek banks down in value by as much as -30%.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Falls after Drop in UK Construction PMI
The Pound Sterling to Euro (GBP/EUR) exchange rate dipped by -0.2% today as the UK Construction PMI data for July showed a 1 point drop from 58.1 to 57.1. Forecasts were for a rise up to 58.5, and this unexpected result has seen the Pound fall against several other major currencies ahead of further UK PMI data due tomorrow.
The Pound’s losses today include a -0.5% fall against the New Zealand Dollar (GBP/NZD), a drop of -1% against the Russian Ruble (GBP/RUB) and a worse loss of -1.4% against the Australian Dollar (GBP/AUD), which has gained significantly from news that the Australian interest rate will remain at 2%.
Euro to Pound Sterling Exchange Rate Forecast: BoE MPC Meeting on Thursday could Rally GBP/EUR Exchange Rate
Interest rates are likely to be a key factor in the Pound’s (GBP) performance against the Euro (GBP/EUR) this week, as optimistic signs from the Bank of England (BoE) Monetary Policy Committee (MPC) meeting on Thursday may indicate that an interest rate hike is due later in the year; this news would likely send the Pound soaring against its competitors.
Germany is the most likely source of gains for the Euro (EUR) in the next few days, as the German Construction and Retail PMI results are due on Wednesday, as are the Eurozone Retail Sales figures. These are followed by German Factory Orders data on Thursday, and any signs of major growth in these sectors will likely strengthen the Euro’s current advantage against the Pound.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7039 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4208 today.