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GBP/EUR Forecast: Pound Sterling Slumps Today as Steel Issue Reaches Crisis Point

The Pound Sterling to Euro (GBP/EUR) exchange rate has slipped today, as have a large number of other usual GBP pairings. This comes as tensions rise in the face of potentially hundreds of job losses for UK steel workers.

Exchange Rate News: UK Currency Softens as Steel Industry Dominates Headlines

The Pound (GBP) has made sizable losses against most of its competitors today, owing to a no-data day and the nation’s beleaguered steel industry coming into sharp focus during the week.

The troubles facing UK steel have been exemplified by the Welsh town of Port Talbot, which is ostensibly entirely dependent on the large Tata steelworks for its livelihood. As the Indian corporation has considered selling off the unprofitable business instead of simply shutting it down, the situation has taken a new but not entirely positive direction.

At present, the government has refused to jump into the deep end and buy the company itself, but it remains to be seen if a big-enough gambler will materialise to take on the plant and its dubious profit margins as well.

The Pound has recorded losses of -0.2% against the Euro (GBP/EUR) and -0.8% against the New Zealand Dollar (GBP/NZD) today, but has also printed a smaller gain of 0.2% against the Qatari Rial (GBP/QAR).

Euro (EUR) Slides as Eurozone Confidence Drops Off Today

Like the Pound (GBP), the Euro (EUR) has been faring fairly poorly today, although this is thought to be on account of Eurozone confidence stats for March. In all fields but the business climate indicator, confidence either dropped or remained negative.

The Euro has recorded losses today of -0.5% against the New Zealand Dollar (EUR/NZD) and -0.8% against the South African Rand (EUR/ZAR), but has gained by 0.2% against the Indian Rupee (EUR/INR) and the Pound Sterling (EUR/GBP).

Future Currency Forecast: German Ecostats due this Afternoon, Eurozone Unemployment Tomorrow

In terms of domestic data, both the Pound (GBP) and the Euro (EUR) are due for movement in the near-future, covering today’s and tomorrow’s economic announcements.

The Eurozone is due for data first, as the high-impact German inflation rate figures for March are due in the afternoon and were previously expected to rise on previous printings.

Tomorrow will open with Germany’s retail sales and unemployment rate results for February and March, while the UK’s net consumer credit and mortgage approvals results for February are due slightly later on in the day.

Current GBP, EUR Exchange Rates

The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2710 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7868 today.