- GBP EUR rate rises to 1.17 – EUR GBP rate trends around 0.85
- GBP EUR rate up before expected Commons Vote – Majority forecast to vote in favour
- Euro losses continue to be caused by Greek debt news – Slowdown in Spanish production concerns investors
The Pound has remained positive against the Euro for the moment today, though a GBP crash is expected imminently due to a scheduled Commons vote on the Article 50 bill. This is predicted to have a majority approval result, which will likely alarm investors due to its indication that Brexit is now set in stone and an inevitability, rather than a possibility.
The Euro has still been held back by disappointing domestic data today, as well as signs that the Greek debt crisis is showing so signs of recovery in the near-term.
(Last Updated February 8th, 2017)
Euro losses were ultimately seen against the Pound on the Greek debt crisis, which remained a dominant issue throughout Tuesday’s trading session.
Eventual GBP Advance Triggered after BoE’s Forbes’ Comments
The Pound initially slumped at the start of Tuesday’s trading, due to a previous amendment session seeing Labour motions on the Article 50 bill get blocked. This meant that there would be no required regular updates on Brexit, as well as no increase in devolved leader involvement in the process.
The Pound was further weakened by an Institute for Fiscal Studies (IFS) report, which estimated that the UK would be undergoing greater austerity measures with little reduction to the deficit by the 2020s, ostensibly because of the tumultuous Brexit process.
A ray of hope came late in the afternoon, however, when Bank of England (BoE) policymaker Kristen Forbes stated that the UK might need an interest rate hike sooner rather than later.
Euro Demand Limited on Greek Debt Fears
The Euro’s greatest limiting factor on Tuesday was Greece, or rather concerns that the nation may not be able to come any closer to repaying its debts.
The source of this uncertainty was an International Monetary Fund (IMF) report, which showed that while most Directors were happy to leave Greece’s GDP target at 1.5%, a few had instead supported the harder-to-obtain figure of 3.5%.
Today’s GBP EUR Forecast: Sterling Slump Forecast if Commons Vote on Article 50 Bill
With a lack of solid UK data expected until the coming Friday, the Pound is next expected to be moved by the third reading of the Article 50 bill, which may be coming imminently.
This will require a further vote at the end of the reading to see if MPs approve; if a majority do, the Brexit process will be further ‘locked in’ as a matter of ‘when’, not ‘if’.
Eurozone news will be limited to Spain’s industrial production result for December, which is predicted to slow down on the year.
Current Interbank Exchange Rates
At the time of writing, the Pound Euro (GBP EUR) exchange rate was trending in the region of 1.16 and the Euro Pound (EUR GBP) exchange rate was trending in the region of 0.85.