The Euro (EUR) has fallen by -0.8% against the Pound Sterling (EUR/GBP) today after the Bank of England (BoE) minutes revealed an optimistic outlook for the UK economy.
Growing German CPIs Tomorrow may Ward Off current Euro Downtrend
The Euro (EUR) has had an unfortunate day today with regards to results; in addition to the Pound (GBP) going on an uptrend thanks to BoE Monetary Policy Committee (MPC) optimism, the common currency was damaged yesterday by European Commission (EC) President Jean Claude-Juncker’s unwavering stance on the terms of the Greek bailout.
Tomorrow, the German CPIs for August may result in a bolstering of Euro confidence, although as of present, predictions have been for stagnation.
The Euro (EUR) has fallen by -0.3% against the Pound Sterling (EUR/GBP) today, although this minor decline for the common currency seems unlikely to remain static in the coming hours.
Bearish BoE Minutes could Send Sterling Diving in the Pairing at Noon
The Euro’s (EUR) current downtrend against the Pound (EUR/GBP) does not seem set to last; based on the minutes of the impending Bank of England (BoE) interest rate decision, the single currency will either dive spectacularly against the Pound (GBP) or soar over it along with countless other rivals. No change is expected to take place in the current UK interest rate of 0.50%, so instead speculators will be scouring the minutes for any clues as to whether the BoE Monetary Policy Committee (MPC) is thinking of raising the UK interest rate in the first or second quarter of 2016.
A marginal advance has been seen in the Euro to Pound Sterling (EUR/GBP) exchange rate today after the Pound (GBP) was let down by a batch of unsettling UK economic data.
EUR/GBP Exchange Rate News: Greek Uncertainties Plague Common Currency’s Performance
The Euro to Pound Sterling (EUR/GBP) exchange rate has trended narrowly today; the scant gains made by the common currency (EUR) can be attributed mostly to a devaluation of the Pound (GBP) rather than a surge in confidence for the Eurozone. The Euro has fallen by more than -0.3% against the Polish Zloty (EUR/PLN), -0.5% against the Swiss Franc (EUR/CHF) and -0.7% against the South African Rand (EUR/ZAR). The only real gain for the Euro has been by 0.3% against the Japanese Yen (EUR/JPY).
This comes on a day of silence for major Eurozone releases. Most of the noise in the next week and beyond will be made over the Greek election on September 20th, the second this year. The jury is out on who seems likely to take the majority; a poll by the Ethnos newspaper has reckoned the difference between previous leader Syriza and their closest rivals to be less than 1%.
Former Prime Minister Alexis Tsipras has altered his stance during his campaigns; while the first election of the year saw Tsipras win on the grounds of rejecting a bailout (which he didn’t do), the second has seen Tsipras promise to modify some of the least ‘fair’ aspects of the third Greek bailout, something that has had a mixed reception among former Syriza voters and his own party.
Sterling Fares Worse in GBP/EUR Pairing as UK Trade Deficit Expands as Predicted
The Pound Sterling to Euro (GBP/EUR) exchange rate as come under pressure today and the Pound has seen an almost universal decline elsewhere. The Pound has dropped by over -0.4% against the Israeli New Shekel (GBP/ILS), the Mexican Peso (GBP/MXN), the Polish Zloty (GBP/PLN) and the South African Rand (GBP/ZAR) and has seen its worst loss against the Russian Ruble (GBP/RUB) by -1.3%.
The disappointing UK Trade Balance figures for July were not the only negative pieces of news today; the annual Manufacturing and Industrial Production results for July also went against the grain; the former figure was expected to post a 0.5% increase: it instead fell by -0.5%, while the latter had been predicted to drop from 1.5% to 1.4% but instead fell to 0.8%.
EUR/GBP Exchange Rate Forecast: NIESR Score will Set the Scene before Bigger BoE Announcements Tomorrow
There are no major Eurozone results scheduled today or tomorrow, so it seems Sterling (GBP) will take the lead in the pairing for the rest of the week. Most pressingly, the NIESR GBP Estimate for August is due for release later today; no bets have been placed on the outcome but the previous prediction by the National Institute of Economic and Social Research indicated a rise of 0.7%. Further ahead, the Bank of England’s (BoE) interest rate decision is out tomorrow and any bullish opinions expressed by policymakers will possibly have the effect of pushing the Euro (EUR) down against the Pound (EUR/GBP).
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7268 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3759 today.