The Euro (EUR) has gained slightly over the Pound Sterling (GBP) today, after the UK Consumer Confidence Survey saw a larger drop than was expected, from 7 points down to 4 instead of 5.
Euro (EUR) Rises after Positive CPI Data, Dive Possible for Common Currency as Greek Talks Drag On
The Euro to Pound Sterling (EUR/GBP) exchange rate has risen by 0.2% today, after the Eurozone Core Consumer Price Index for July showed a 0.2% increase up to 1%. Although this figure is far from the European Central Bank’s (ECB) target of ‘below, but close to, 2%’, the results are positive for the Eurozone and by extension, the Euro (EUR). The common currency also gained by over 0.7% against the South African Rand (EUR/ZAR) and the New Zealand Dollar (EUR/NZD).
This sudden rally may not be set to last, however, as concerns have once again risen over the logistics and viability of the Greek bailout; the International Monetary Fund (IMF), one of Greece’s creditors, has refused to even participate in the bailout talks until an ‘explicit and concrete agreement between Greece and its Eurozone partners on how to provide debt relief’ has been reached. Any (expected or unexpected) setbacks may see the Euro plummet once again, as it has throughout all stages of the fraught negotiations.
The Euro to Pound Sterling (EUR/GBP) exchange rate has dropped by 0.2% today as data releases and new developments continue to seesaw the Euro’s performance.
Euro to Pound Sterling (EUR/GBP) Exchange Rate News: German Data Swings Euro (EUR) in Both Directions
The Euro (EUR) has been both helped and hindered by the release of Eurozone economic data today, and this trend seems set to continue, at least for the next few days. The Euro gained by over 0.5% against the Polish Zloty (EUR/PLN) and the New Zealand Dollar (EUR/NZD) today, and has seen greater gains against the South African Rand (EUR/ZAR), with an increase of 0.9%.
However, the Euro has also underperformed, trending narrowly against the US Dollar (EUR/USD), the Australian Dollar (EUR/AUD) and the Canadian Dollar (EUR/CAD), and falling by -0.3% against the Pound Sterling (EUR/GBP). The Pound Sterling (GBP) has enjoyed a 0.3% rise over the Euro (GBP/EUR) today, and has also gained against the New Zealand Dollar (GBP/NZD) and the South African Rand (GBP/ZAR) by over 0.6%.
Further Fluctuations Likely in Pound Sterling to Euro (GBP/EUR) Exchange Rate, Steady CPI Data Could Secure Euro’s Movement
The German Unemployment Change data for July showed an unexpected 9,000 person increase, against the predicted 5,000 person decrease. This sent the Euro (EUR) into a decline, although the July Eurozone Economic Confidence figure showed a rise against both the previous figure and the predicted amount. These results are just a fraction of the numerous factors that are currently affecting the Euro’s performance against other currencies.
These wild contrasts in performance continued across the Eurozone; Spain recorded 1% growth in its second quarter today, but by contrast, the Greek economy is expected to shrink by -3.3% this year.
Euro to Pound Sterling Exchange Rate Forecast: Uncertain Times Ahead for EUR/GBP Pairing
As the UK’s next economic data release isn’t until Friday, the Pound Sterling (GBP) is expected to remain steady against other currencies until then. For the Euro (EUR), however, the common currency is likely to be affected by a number of upcoming data releases both today and tomorrow.
The German July CPI Indices are released today, and tomorrow sees the announcement of the German Retail Sales figures for June, as well as the Eurozone’s June Unemployment Rate and July CPI Indices. Forecasts have been mixed across the board, so it seems probable that the Euro will repeat the seesawing performance that it has made today.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7019 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4254 today.