The Pound Sterling (GBP) has fallen by -0.2% against the Euro (GBP/EUR) today, mainly on account of the UK Construction PMI for November declining from 58.8 to 55.3.
Eurozone PMIs and More Further UK PMIs due out Tomorrow
The next results affecting the Pound Sterling (GBP) and the Euro (EUR) tomorrow will be PMI-based. The UK will have November Composite and Services PMIs out, while the Eurozone will be affected by PMIs for the same sectors covering Italy, France, Germany and the Eurozone.
The UK results are both forecast to print at 55 points, while overall predictions are for stagnation across the Eurozone board.
The Pound Sterling (GBP) has made a marginal gain against the Euro (GBP/EUR) today, but this could soon be undone given the impending high-impact data.
Pound Sterling (GBP) Investors Hoping to Avoid Repeat UK PMI Performance Today
The first of these economic releases will be the UK’s Construction PMI for November, which has been forecast to decline by a small amount. The second will be the Core and Estimated Eurozone annual Inflation Rate figures for November.
The Pound Sterling to Euro (GBP/EUR) exchange rate has risen marginally today, although the Pound (GBP) has otherwise been trending narrowly against most of the competition due to a speech from BoE Governor Mark Carney.
GBP/EUR Exchange Rate News: Falling Manufacturing Score makes Sterling Rally Unlikely Today
The Pound Sterling (GBP) has edged up slightly against the Euro (GBP/EUR) today, but a majority of its other movement has been characterised by narrow trending and sizable declines. The other gains have included 0.2% against the US Dollar (GBP/USD) and 0.4% against the Chinese Yuan (GBP/CNY), but losses have been made up of -0.5% against the Russian Ruble (GBP/RUB) and the Australian Dollar (GBP/AUD) and -0.6% against the New Zealand Dollar (GBP/NZD).
The major influences on the Pound this morning have included the UK Manufacturing PMI for November falling from 55.2 to 52.7, the mostly positive results of the BoE Stress Tests on UK banking institutions and a speech from Carney following the stress test results. One of the most notable developments was that banks will now be required to hold £10bn in capital reserve to prevent potential bankruptcies, rather than having the taxpayer foot the bill. Carney gave a neutral and unoriginal outlook on the UK economy, stating that the environment ‘remains challenging’.
Euro (EUR) Trends Narrowly Today as Beneficial Unemployment Figures Come In
The Euro (EUR) has declined overall today, although it has a minor gain of 0.2% against the US Dollar (EUR/USD). The other notable results have been losses by a small amount against the Pound Sterling (EUR/GBP) and of -0.6% against the Australian Dollar (EUR/AUD) and the New Zealand Dollar (EUR/NZD).
Eurozone data has largely been supportive today, with the German and Eurozone Unemployment Rates for November and October respectively both falling. The former has dropped from 6.4% to 6.3%, while the latter has reduced from 10.8% to 10.7%. The likely reason for the lack of movement in the common currency today is that the European Central Bank’s (ECB) December review is due on Thursday, which could see an extension of quantitative easing.
GBP/EUR Exchange Rate Forecast: UK Construction Results due Tomorrow ahead of Eurozone Inflation
The next economic influence on the GBP/EUR pairing will come from the UK, with tomorrow morning’s release of the UK Markit/CIPS Construction PMI for November. At the time of writing, forecasts were for a marginal decline in the score from 58.8 to 58.5.
Shortly after that will be the Eurozone annual Inflation Rate results for November, as well as the currency bloc’s October Producer Price Indexes (PPI). As of writing, forecasts were pessimistic for both PPI figures and for stagnation on the Core CPI printing at 1.1%. With the CPI estimate, a minor rise from 0.1% to 0.2% has been forecast.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4250 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7020 today.