The Euro to Pound Sterling (EUR/GBP) exchange rate has declined marginally today, mainly on account of the morning’s Eurozone economic announcements printing poorly.
EUR/GBP Exchange Rate News: German PPI Results Add to Previous Negative Draghi Message
For the most part, the Euro (EUR) has declined against its peers today, with the only noticeable gain recorded being an advance of 1.1% against the South African Rand (EUR/ZAR). On the other side, losses have included a minor slip against Pound Sterling (EUR/GBP) and -0.5% against the Indian Rupee (EUR/INR) and the Japanese Yen (EUR/JPY).
The Euro has been softened lately by domestic data. Although yesterday’s inflation rate results for February increased the common currency’s appeal somewhat, this was quickly eclipsed by the negativity caused by European Central Bank (ECB) President Mario Draghi’s words in the evening.
The policymaker pointed out the limitations of relying solely on monetary policy for change, insisting that it was in the hands of Eurozone politicians to provide further support to economic growth and stability in the currency bloc.
Pound Sterling (GBP) Levels Out after Two Days of Drama
Wednesday was a day of defeat for the Pound (GBP), which started and remained low against rivals due to concerns ahead of and after the major 2016 budget announcement.
Yesterday brought far better movement, as the Pound rallied on the fact that the Bank of England (BoE) March minutes failed to mention any suspected interest rate cuts taking place in the future.
Today has seen the Pound move on a level plane due to a lack of domestic data; the biggest story in the UK has been the development that Wednesday’s highly controversial Budget mention of cutting disability benefits is merely a ‘suggestion’, instead of a definite policy measure on the part of the Tories.
The Pound has risen slightly against the Euro (GBP/EUR) today but fallen by -0.4% against the Israeli New Shekel (GBP/ILS).
EUR/GBP Exchange Rate Forecast: Eurozone Wage Growth and BoE Bulletin Out Today
The near future is set to bring a pair of relatively impactful releases for the Eurozone and the UK, with the former area releasing data first.
This will be the annual wage growth result for the fourth quarter, which was forecast to fall from 1.4% to 1.3% at the time of writing.
Following on from this at noon will be the BoE quarterly bulletin, which could give some indication of the BoE’s outlook following the UK Referendum in June.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7806 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2812 today.