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Pound Sterling to Euro Exchange Rate Forecast: GBP/EUR, GBP/USD End Week Softer as BoE Says Rate Cuts Possible

GBP/EUR, GBP/USD Exchange Rates Fall before UK CPI

Both the Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates prepared to close out the week trading in a weaker position as dovish comments from the Bank of England (BoE) and below-forecast UK wage data continued to take a toll.

The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3785 while the Pound Sterling to US Dollar (GBP/USD) exchange rate was trading in the region of 1.4727.

The UK is set to publish inflation data next week and if consumer price growth slows, giving the BoE scope to keep interest rates at record lows, the Pound is likely to extend declines against its major peers.

Earlier…

Pound Sterling (GBP) Declines against US Dollar but Maintains Gain against Euro after Haldane Comments

As the European session progressed on Thursday the Pound was just about managing to cling to earlier gains against the Euro.

However, Sterling stumbled against the US Dollar and fell by 1.4% in the wake of comments issued by the Bank of England’s chief economist.

Andy Haldane intimated that the BoE is just as likely to cut to interest rates as to raise borrowing costs.

He stated; ‘I think the chances of a rate rise or cut are broadly evenly balanced. In other words, my view would be that policy may need to move off either foot in the immediate period ahead, depending on which way risks break.’

The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3870

The Pound Sterling to US Dollar (GBP/USD) exchange rate was trading in the region of 1.4740

Tomorrow’s UK current account figures could have an impact on demand for the Pound.

Earlier…

Pound Sterling to Euro (GBP/EUR) Exchange Rate Gains 0.8%, Pound Sterling to US Dollar (GBP/USD) Gains 200 Pips

After falling to a fortnightly low on Wednesday following the publication of disappointing UK employment figures, the GBP/EUR exchange rate recovered 0.8% on Thursday to return to trending in the region of 1.39.

With UK data in short supply, any further movement in the pairing might be caused by the ECB’s economic bulletin.

Meanwhile, the Pound surged against the US Dollar after the Federal Open Market Committee’s policy statement was slightly more dovish than hoped for, pushing back Fed rate hike expectations in the process.

Although Sterling has since pared some of its initial gains, the GBP/USD pairing is still trading in a stronger position than it was prior to the FOMC announcement.

The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3909

The Pound Sterling to US Dollar (GBP/USD) exchange rate was trading in the region of 1.4865

Earlier…

Ahead of the FOMC announcement, the Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3806 and the Pound Sterling to US Dollar (GBP/USD) exchange rate was trading in the region of 1.4716.

Earlier…

GBP/EUR Down 0.6%, GBP/USD Sheds 0.5% after UK Employment Figures

Both the Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates declined following the release of the UK’s employment figures.

Although the nation was shown to have added more positions than expected in the three months through January (143,000 as oppose to the  130,000 expected) the UK’s unemployment rate held at 5.7% instead of declining to 5.6%.

Average weekly earnings, both excluding and including bonuses, also fell rather than increasing as anticipated.

Meanwhile, the Bank of England’s (BoE) meeting minutes showed that all nine members of the Monetary Policy Committee (MPC) voted in favour of leaving interest rates on hold at the last gathering.

The Pound Sterling to Euro (GBP/EUR) exchange rate fell to a low of 1.3822

The Pound Sterling to US Dollar (GBP/USD) exchange rate hit a low of 1.4659

Earlier…

Pound Sterling to Euro (GBP/EUR) Exchange Rate News: Pound Lower on Election Concerns, Euro Supported by Confidence Data

The Pound Sterling to Euro (GBP/EUR) exchange rate declined on Tuesday as demand for the Pound eased in the wake of UK election concerns.

The prospect of a hung parliament and an in-out EU referendum pushed Sterling lower against both the Euro and US Dollar.

Even the news that minimum wage is set to rise failed to lend the Pound support.

According to industry expert Jonathan Webb; ‘Higher wages is one of the pre-requisites to see for the Bank of England to raise rates, and that’s something in normal circumstances we would expect to see later in the year. But at the moment the politics is starting to dominate.’

The Pound Sterling to Euro (GBP/EUR) exchange rate achieved a high of 1.3943

Meanwhile, the Euro was supported by Monday’s commentary from European Central Bank (ECB) President Mario Draghi.

Draghi indicated that the Eurozone’s recovery is progressing and that the measures introduced by the central bank are already having a positive impact on the region.

Encouraging confidence reports for the Eurozone and its largest economy also helped the Euro trend higher against the Pound.

The UK’s employment figures will be dictating the direction taken by the GBP/EUR currency pair in the hours ahead.

A strong jobs gain, falling unemployment rate and climbing earnings figure would be Pound supportive and may even push GBP/EUR back towards its recent seven-year highs.

The Bank of England’s (BoE) meeting minutes will also be of interest. Dovish minutes will weigh on the Pound but any hawkish references will push the currency higher.

Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast: Dovish FOMC Could Help Pound Rally

Sterling’s downtrend against its peers extended to the US Dollar and the GBP/USD exchange rate remained trading in the region of a four-and-a-half year low in spite of the US publishing disappointing housing starts figures.

The Pound Sterling to Euro (GBP/EUR) exchange rate fell to a low of 1.3883

The expectation that the Federal Open Market Committee (FOMC) will use today’s policy announcement to ditch the word ‘patience’ from its interest rate rhetoric kept the ‘Greenback’ comparatively buoyant, but if the Fed disappoints we could see ‘Cable’ rally.

A cautious FOMC may drive the Pound back towards the key technical support level of 1.50 ahead of tomorrow’s US initial jobless and continuing claims figures.

Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast: Eurozone Trade Balance, UK Budget Ahead

Additional fluctuations in both the Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates could be inspired by the Eurozone’s trade balance and construction output figures as well as the announcement of the final pre-election UK budget.

The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trading in the region of 0.7192, the Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.4748, the US Dollar to Pound Sterling (USD/GBP) exchange rate is trading in the region of 0.6778, the Pound Sterling to Euro (GBP/EUR) exchange rate is trending in the region of 1.3896