GBP/EUR Exchange Rate Up 0.6%, GBP/USD Exchange Rate Holds Decline
After UK consumer confidence and growth reports printed above expected levels, the Pound Sterling to Euro (GBP/EUR) exchange rate advanced to a high of 1.3780.
However, the bullish nature of the US Dollar meant that Sterling’s performance against the ‘Greenback’ was less impressive, and the GBP/USD currency pair held a 0.2% drop to trade in the region of 1.4768.
While the positive UK reports were partly responsible for the Euro’s gains, the GBP/EUR uptrend was largely due to investors ditching the Euro following the rejection of the latest Greek reform proposal.
With Greece and Russia due to meet, tensions are high and further GBP/EUR fluctuations can be expected.
Pound Sterling to Euro (GBP/EUR) Exchange Rate News: German Inflation Accelerates to 0.3%
Although the crunch talks between Greece and its creditors limited the Euro’s gains to a certain extent, the common currency still advanced on the Pound following the publication of the latest German inflation data.
The report showed that consumer prices in the Eurozone’s largest economy advanced by 0.3% on the year, up from a previous annual reading of 0.1%.
On a month-on-month basis CPI increased by 0.5%, more than the 0.4% expected.
The data saw economist Jennifer McKoeown comment; ‘Data from the German state point to a rise in German inflation back into positive territory in March, but underlying price pressures are still weak.’
After the figures were published the Pound Sterling to Euro (GBP/EUR) exchange rate fell to a low of 1.3625.
Meanwhile, the Pound Sterling to US Dollar (GBP/USD) currency pair extended its daily decline to over 0.6% as investors responded to stronger-than-anticipated US Personal Consumption Expenditure.
The core measure came in at 1.4% on the year in February rather than the 1.3% projected following a 0.4% increase in personal income in February.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was left trading in the region of 1.4781.
GBP/EUR Steady after Eurozone Confidence Figures
Although the Eurozone’s Industrial, Services and Economic Confidence gauges printed above expected levels, the Pound managed to cling to earlier gains against the Euro thanks to ongoing Greek bailout concerns.
However, if today’s German inflation report reveals that the annual consumer price index advanced from 0.1% to 0.3% in March, as expected, Sterling could lose ground against the Euro in the hours ahead.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3675
The Pound Sterling to Euro (GBP/EUR) exchange rate posted modest gains on Monday as the good-feeling inspired by Greece presenting its creditors with reform proposals wore off, but the Pound Sterling to US Dollar (GBP/USD) exchange rate declined in response to almost hawkish comments from Federal Reserve Chairwoman Janet Yellen.
Pound Sterling to Euro (GBP/EUR) Exchange Rate News: Greece Presents Reform Proposals, ‘Grexit’ Fears Recede
The Pound Sterling to Euro (GBP/EUR) exchange rate advanced towards the close of last week as Bank of England (BoE) Governor Mark Carney asserted that the next move for interest rates was a positive revision.
However, the GBP/EUR pairing gave up gains before the weekend as Greece presented its creditors with a list of economic reforms, dampening ‘Grexit’ fears in the process.
The proposals were being considered by the European Union, International Monetary Fund (IMF) and European Central Bank (ECB) over the weekend and Greek Prime Minister Alexis Tsipras is due to update lawmakers on the progress made later today.
The Pound Sterling to Euro (GBP/EUR) exchange rate hit a high of 1.3708
It was said that these proposals contained no ‘recessionary measures’ and if the nation’s creditors reject them, putting the prospect of a Greek exit from the Eurozone back on the table, the common currency could tumble against its rivals in the hours ahead.
According to economist Erik Nielsen; ‘The Greek government’s strategy of isolating Germany and getting a majority of other Eurozone members to support another package against vague promises and no coherent reform plan has failed spectacularly. If the Greek government does not make the necessary U-turn they’ll run out of money.’
The UK’s Net Consumer Credit and Mortgage Approvals reports had little impact on the GBP/EUR pairing this morning.
Consumer Credit was shown to have eased from 0.8 billion to 0.7 billion in February while Mortgage Approvals advanced from 60.8k to 61.8k.
Today’s Eurozone confidence measures are likely to cause Pound Sterling to Euro (GBP/EUR) exchange rate movement.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate News: ‘Greenback’ Gains as Yellen States Fed on Course for Rate Increase
The Pound Sterling to US Dollar (GBP/USD) exchange rate tested the key support level of 1.50 several times last week as the US published disappointing Durable Goods Orders data and Friday’s fourth quarter GDP figure was left unrevised.
However, the Pound closed out Friday trading in a softer position against the US Dollar as demand for the ‘Greenback’ increased following a speech given by Federal Reserve Chairwoman Janet Yellen.
The Pound Sterling to US Dollar (GBP/USD) exchange rate hit a high of 1.4884
Yellen, who has taken a rather dovish approach of late, asserted that the Federal Reserve is on course to adjust borrowing costs in 2015.
Yellen stated; ‘If conditions do evolve in the manner that most of my [Fed] colleagues and I anticipate, I would expect the level of the federal funds rate to be normalised only gradually, reflecting the gradual diminution of headwinds from the financial crisis and the balance of risks I have enumerated of moving either too slowly or too quickly.’
Although her remarks were far from hawkish, they were US Dollar positive.
Today’s US Personal Consumption data could have an impact on GBP/USD trading.
Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast: UK Manufacturing PMI Ahead
While Friday’s US Non-Farm Payrolls report is likely to be the biggest market mover, both the Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates could experience fluctuations in response to a run of UK reports.
The most influential UK reports to be aware of include the nation’s GfK Consumer Confidence gauge, final Q4 GDP, Business Investment numbers, the Markit Manufacturing PMI for March and Construction PMI.
The Euro to Pound Sterling (EUR/GBP) exchange rate was trading in the region of 0.7315 the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.4850, 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 1.3666