GBP/EUR Rallies to High of 1.3505
The Pound Sterling to Euro (GBP/EUR) exchange rate advanced beyond 1.3505 as comments from a Greek official indicated that the government might not be as close to reaching an accord with its creditors as hoped.
In the hours ahead, UK election updates will be driving GBP/EUR exchange rate news.
Earlier…
GBP/EUR Exchange Rate Forecast to Continue Fluctuating as Votes are Cast and Counted
As voting day dawned, the Pound Sterling to Euro (GBP/EUR) exchange rate shed 0.3% and hit a low of 1.3378.
The pairing was little affected by Germany’s below-forecast Factory Orders report and mildly disappointing Markit Construction PMI.
Economists had bet that factory orders in the Eurozone’s largest economy would increase by 1.5% in March, month-on-month, but they actually climbed 0.9%.
Meanwhile, Germany’s Construction PMI moved closer to the 50 mark separating growth from contraction by sliding from 53.3 to 51.0.
Germany’s Retail PMI also slipped modestly, moving to 52.6 from 53.
Although the day’s European ecostats are worth noting, market sentiment will continue being dominated by UK political concerns in the hours ahead.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3390
Earlier…
Even a sturdy UK Services PMI wasn’t enough to bolster the Pound Sterling to Euro (GBP/EUR) exchange rate on the eve of the 2015 UK general election, and the currency pair could fall further still if investors don’t get the outcome they want.
Pound Sterling to Euro (GBP/EUR) Exchange Rate News – Pound Sits at 1.34, Eurozone Data and Greek Developments Boost Euro
As the week continued the Pound Sterling to Euro (GBP/EUR) exchange rate backtracked on earlier gains and returned to trending just above the 1.34 level.
Fears that the UK’s service sector-led economic recovery won’t prove sustainable wore on the British asset while the Euro advanced in response to the news that Greece paid the International Monetary Fund its next debt installment.
While the 200 million Euro payment did ease ‘Grexit’ concerns for the time being, as industry expert Elena Becatoros highlights; ‘another, much larger repayment looms next week that Greece will struggle to manage. The country once more faces the possibility of having to default on its debt, which could set off a chain of events jeopardizing its membership in Europe’s joint currency. The country’s left-wing government has been locked in troubled negotiations with its creditors and the institutions overseeing its bailout – the IMF, European Central Bank and European Commission – for the past three months.’
The Pound Sterling to Euro (GBP/EUR) exchange rate hit a high of 1.3574
It is hoped that substantial progress in the negotiations will be made by Monday 11th, but after the UK election is out of the way it is likely that the Greek situation will return to being a driving force behind GBP/EUR movement.
Although the UK’s Markit Services PMI trumped forecasts for a reading of 58.5 by advancing to 59.5, the Pound’s relationship with the Euro remained moderately bearish as political uncertainty clouded sentiment.
UK Election Could See GBP/EUR Exchange Rate Fall – Conservative Victory Forecast to Support Pound while Labour Win may Push Sterling Lower
As the most hotly contested UK general election of a generation reaches its climax, investors are wondering what outcome will have the most impact on the Pound Sterling to Euro (GBP/EUR) exchange rate.
The Pound Sterling to Euro (GBP/EUR) exchange rate fell to a low of 1.3422
Usually a win for the comparatively thrifty, business-driven Conservative party increases the appeal of British assets, including Pound Sterling, while victory for the more spend-happy Labour party sees a reduction in demand for the Pound.
However, the majority of polls are putting the two parties neck and neck, with neither appearing to have enough support to govern the country alone.
So what is the most likely outcome of the 2015 UK general election?
According to The Week; ‘If no single party commands a majority, David Cameron will remain in office while negotiations take place between the parties, and as the incumbent he will be first in line to form a government, either through formal coalition or a looser alliance of parties. If he cannot, the party with the next largest number of seats, ie Labour, will make the next attempt to form a government. Most projections put the Conservatives well short of the 326 seats they would need to form a majority government, and the Lib Dems may not be left with enough MPs to make up the shortfall.’
Latest 2015 UK General Election Poll Results
Final YouGov Nowcast: Con 276, Lab 276, Lib Dem 23, UKIP 1, SNP 51 http://t.co/C1y81SS6lM
— YouGov (@YouGov) May 6, 2015
Final Populus & Ashcroft polls added to http://t.co/j83TeUDhFz Tories & Labour now exactly tied on 33% (LDems 9.3%) pic.twitter.com/EbspetJEcz
— May2015 Election (@May2015NS) May 5, 2015
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast – UK Election, Greek Negotiations and German Data in Focus
While the outcome of the UK General Election is likely to be the biggest cause of Pound Sterling to Euro (GBP/EUR) exchange rate movement over the tail end of the week, ecostats from the Eurozone and any developments in the Greek bailout negotiations will also be of interest.
If the Eurozone’s economic reports, including Thursday’s German Factory Orders numbers and the Eurozone’s Retail PMI show improvement, the dip in the GBP/EUR exchange rate could be exacerbated.
Conversely, if it still seems as though Greece will struggle to come to terms with its creditors, the Euro could come under pressure of its own as we head into the weekend.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3442, the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7435, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5240 and the US Dollar to Pound Sterling exchange rate was trending in the region of 0.6561
