The Pound Sterling (GBP) has trended narrowly against the Euro (GBP/EUR) today after the UK and the Eurozone received minor support from data releases earlier.
Pound Sterling (GBP) Dips as Greek Bailout Talks Predicted to Close this Week
The Pound Sterling (GBP) has marginally improved its performance against the Euro (GBP/EUR) today; rather than falling by -0.2%, the Pound has trended narrowly. The only data release affecting the Pound today has been the UK yearly BRC Like-For-Like Sales figure for July, which showed a 1.2% increase. For the Eurozone, the German yearly Wholesale Price Index showed no change, but the monthly figure showed minor growth of 0.1%. This has effectively balanced the two currencies against each other, although this does not seem set to last.
The Greek bailout negotiations seem to be (finally) nearing their end, as Greek Finance Minister Euclid Tsakalotos said that only ‘Two or three very small details remain’ today. A final conclusion to these talks will likely bolster the Euro (EUR) enormously, as closing the deal will renew optimism for Greece’s economic future, which will in turn support the common currency. More immediately, the German ZEW Survey of Economic Sentiment for August is due for release today, and if the optimistic forecasts are accurate, the Euro may receive an early boost in performance ahead of the expected bailout agreement to be reached this week.
The Euro (EUR) has retained its advantage against the Pound Sterling today, despite the Sentix Investor Confidence figure for August falling below the previous number and the predicted figure.
Steady Performance of the Euro (EUR) Suggests Surge after Imminent Greek Bailout Conclusion
The previous result for the Sentix figure was 18.5; this month’s update saw a drop of -0.1, which was a far cry from the expected rise up to 20.3. In spite of this, the common currency (EUR) has advanced against other currencies, rising against the Australian Dollar (EUR/AUD) and the New Zealand Dollar (EUR/NZD) by over 0.9%. Against the Pound Sterling (EUR/GBP), the Euro has gained by 0.2%.
These figures suggest a great deal of optimism for the conclusion of the Greek bailout deal late tonight (or early tomorrow morning), and imply that the Euro may gain bullishly following a satisfactory agreement between Greece and its creditors.
The Pound Sterling to Euro (GBP/EUR) exchange rate has trended in a narrow range today, ahead of a key week for both currencies.
Pound Sterling to Euro Exchange Rate News: GBP/EUR Stable after Last Week’s BoE Inspired Losses
The Pound Sterling (GBP) has trended narrowly against the Euro (GBP/EUR) today, but made gains elsewhere as a new economic week begins. The Pound rose by 0.3% against the South African Rand (GBP/ZAR) and the Singapore Dollar (GBP/SGD) today, and saw greater gains of over 0.5% against the Australian Dollar (GBP/AUD), the New Zealand Dollar (GBP/NZD) and the Russian Ruble (GBP/RUB).
This stable performance is a significant improvement over last week’s display, where the Pound fell against almost all of its competitors following a worse result than expected from the Bank of England (BoE) Monetary Policy Committee (MPC) meeting on Thursday.
Euro to Pound Sterling (EUR/GBP) Exchange Rate sees no Advantage for Common Currency ahead of Investor Confidence Figure
The Euro (EUR) has seen marginal gains against the Pound (EUR/GBP) today, but has risen against other rivals. These include an advance of more than 0.3% against the South African Rand (EUR/ZAR) and the Canadian Dollar (EUR/CAD), an increase of over 0.5% against the New Zealand Dollar, and a rise of 0.9% against the Australian Dollar (EUR/AUD).
The Euro’s gains today come along with news from Greece that the current bailout negotiation may be concluded early on Tuesday ‘at the latest’, according to a Greek official. Such a rapid conclusion may push the Euro’s performance either way, as while this agreement would grant the Greek government the key funds it needs to meet looming repayment schedules, this sum would still be stacked on top of Greece’s existing debt mountain. More immediately, the Eurozone Sentix Investor Confidence survey for August is due today, and forecasts predict growth in the figure.
Pound Sterling to Euro Exchange Rate Forecast: Equal Opportunity for Advantage in Major Data Week for Pound Sterling and Euro
Both the UK and the Eurozone have key economic data releases this week, which all have the potential to swing the GBP/EUR exchange rate in either direction. For the UK, the Unemployment Rate and Employment Change figures for the 3 months through to June, due in on Wednesday, and the yearly Construction Output results for June (released on Friday) are expected to have the biggest impact on the Pound’s (GBP) performance.
The Eurozone German ZEW Survey of Economic Sentiment for August (released on Tuesday) and the Eurozone Q2 GDP data on Friday are both likely to be key affecters of the Euro’s (EUR) performance against the Pound this week.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4110 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7089 today.