Pound Sterling to Euro (GBP/EUR) Exchange Rate News: Sterling Softer on Profit Taking, Greek Speculation
With the news that the Greek economy minister believes that a deal with the nation’s creditors will be reached next week lending the Euro support, the Pound lost 0.5% against the common currency.
The GBP/EUR exchange rate lost 0.5% over the course of local trading, falling from a high of 1.3826 to trend in the region of 1.3738.
The losses in the Pound to Euro currency pair were also due to the Markit Manufacturing PMIs for the Eurozone and its largest economies being positively revised from initial estimates.
The UK’s own manufacturing PMI, which advanced from a negatively revised 54.0 to 54.4, lent the Pound little support.
During the European session the Pound also gave up earlier gains against the US Dollar and the Pound Sterling to US Dollar (GBP/USD) exchange rate lost 0.4% to trade in the region of 1.4765.
Both the Pound Sterling to Euro (GBP/EUR) exchange rate and Pound Sterling to US Dollar (GBP/USD) exchange rate prepared to close out the local session trading in a stronger position as upbeat UK data and global economic developments triggered notable movement.
Pound Sterling to Euro (GBP/EUR) Exchange Rate News: Greek Reforms Rejected, UK Confidence Climbs
Over the course of the European session the Pound Sterling to Euro (GBP/EUR) exchange rate gained by over 1.0% to achieve a high of 1.3827 before returning to trend in the region of 1.3822.
The strength in the GBP/EUR pairing was largely due to growing ‘Grexit’ concerns as the reform proposals presented by Greece were rejected by the nation’s creditors. Industry experts are now saying that a deal is unlikely to be reached before Easter.
Given that the Hellenic region is on the verge of running out of funds, this is causing a spate of Euro risk-aversion.
The Pound Sterling to Euro (GBP/EUR) exchange rate hit a high of 1.3827
German Chancellor Angela Merkel remained relatively upbeat, tweeting; ‘I won’t pin down any dates, programme runs to the end of April, the faster Greece responds, the faster we can help. Work ongoing’ – but that didn’t stop the Euro’s slide.
The Pound was also supported against its European counterpart as a gauge of UK Consumer Confidence advanced to a 12-year high and British fourth quarter growth data was positively revised on both a QoQ and YoY basis.
The Euro’s losses were initially stymied as the German unemployment rate declined unexpectedly and a retail sales slide in the Eurozone’s largest economy was shown to be smaller than feared, but the common currency’s downtrend continued as the Eurozone’s core inflation rate eased from 0.7% to 0.6%.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate News: ‘Greenback’ Pares Gains Despite US Sentiment Climbing
The Pound Sterling to US Dollar (GBP/USD) exchange rate was struggling for most of the European session in spite of the UK releasing some encouraging domestic reports.
The increase in UK Confidence and GDP prompted this response from Chancellor of the Exchequer George Osborne.
‘We’ve had a significant upgrade to GDP, the highest consumer confidence for over 12 years and confirmation that living standards are higher than they were at the last election. This is good news for families and businesses across the country.’
The Pound Sterling to US Dollar (GBP/USD) exchange rate hit a high of 1.4872
However, after getting off to a sluggish start, the Pound gradually crept higher against the ‘Greenback’, eventually posting a 0.3% daily gain.
US data was mixed on Tuesday, with the US Consumer Confidence index showing unexpected improvement (in rising from a positively revised 98.8 to 101.3 in March) and the Chicago Purchasing Manager Index failing to push above 50 as forecast.
The Chicago index advanced from 45.8 to 46.3 instead of achieving the 51.8 projected.
The US Dollar dipped against the Pound even as Federal Reserve Bank of Richmond President Jeffery Lacker asserted that there is a ‘strong’ argument in favour of hiking interest rates in June of this year.
Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast: UK Manufacturing, Construction Data Ahead
On Wednesday both the Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates could experience movement as a result of the UK’s Markit Manufacturing PMI.
If the measure of the manufacturing sector shows the improvement expected by economists, the Pound could extend today’s gains.
Final Markit Manufacturing PMI’s for the Eurozone and its largest economies may also have an impact on GBP/EUR pairing.
Meanwhile, investors with an interest in the GBP/USD exchange rate will be focusing on speeches to be given by various US officials and the US ISM Manufacturing Index.
Thursday will see the release of the UK’s Construction PMI.
The Euro to Pound Sterling (EUR/GBP) exchange rate was trading in the region of 0.7233, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.4845, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trading in the region of 0.6731, the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3821