Pound Sterling to Euro (GBP/EUR) Exchange Rate News: Sterling’s Downtrend Continues, Construction Output Falters
The Pound fell below the 1.40 level against the Euro on Friday as the UK’s Construction Output report disappointed expectations.
UK Construction Output was shown to fallen by -2.6% on the month and -3.1% on the year. Respective figures of 1.3% and 2.1% had been projected.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.4003
With the BoE meeting minutes and the Eurozone’s employment figures due out next week, plenty more GBP/EUR movement could be on the cards.
Pound Broadly Softer before Construction Output
With the Euro advancing across the board on bets that the common currency’s declination was overdone, the Pound extended losses against its European peer and took its daily drip to around 0.8%.
Comments issued by Bank of England (BoE) Governor Mark Carney on the subject of the impact of Sterling’s strength on inflation also contributed to the Pound’s down trend.
The Pound also held on to declines against the US Dollar in spite of the US Advance Retail Sales report showing an unexpected slide in consumer spending in February. As economists blamed the negative result on adverse weather conditions, the ‘Greenback’s initial losses were limited and swiftly reversed.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.4028
If tomorrow’s UK Construction Output data shows a solid improvement, the Pound could recoup losses before the weekend.
GBP/EUR Exchange Rate News: Sterling Holds Decline – UK Deficit Narrows, Eurozone Industrial Production Jumps
The Pound Sterling to Euro (GBP/EUR) exchange rate remained trading in a slightly softer position as the European session progressed on Thursday and both the UK and Eurozone published better-than-expected domestic data.
Firstly, the UK’s trade deficit was shown to have narrowed by considerably more than anticipated in January thanks to the slide in oil prices.
The shortfall eased from 2.1 billion Pounds in December to 616 million Pounds in January. December’s figure had been a five-year high.
According to strategist Stephen Saywell, the trade data ‘is another positive in the UK outperformance story. Like the US, the UK is likely to hike [interest rates] sooner rather than later, but there’s still a lot of uncertainty about the timing. If the market brings forward that timing, Sterling continues to look pretty positive.’
The report helped the Pound gain against the US Dollar, but the GBP/EUR pairing failed to advance as the Eurozone’s industrial production report showed an annual increase of 1.2% in January, considerably more than the 0.1% year-on-year figure anticipated.
Production did slip by -0.1% on the month, but December’s figures were positively revised.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.4135
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trading in the region of 1.4982
Pound Sterling to Euro (GBP/EUR) Exchange Rate News: GBP/EUR Edges away from 7-Year High after Industrial Production Dip
After striking six fresh seven-year highs in as many days, the Pound Sterling to Euro (GBP/EUR) exchange rate softened following the release of disappointing UK industrial production data.
The Pound Sterling to Euro (GBP/EUR) exchange rate achieved a high of 1.4212
Earlier this week comments from Bank of England (BoE) Governor Mark Carney regarding the unlikelihood of the central bank loosening policy further helped the Pound advance above 1.42 against the Euro.
The GBP/EUR pairing also benefited from underlying Euro weakness as the Greek bailout negotiations faltered and the European Central Bank’s (ECB) quantitative easing programme began to have an impact.
The fact that the Swiss National Bank (SNB) is no longer buying large amounts of Euros in order to maintain the Franc’s peg with the common currency is another factor keeping the Euro under pressure.
However, a slide in UK industrial output drove the GBP/EUR pairing back down towards the 1.41 level and the Pound could return to trending in the region of 1.40 if today’s UK trade data falls short.
GBP/USD Exchange Rate Drops to 20-month Low – US Dollar Could Rally on Sales Data
Meanwhile, the Pound Sterling to US Dollar (GBP/USD) exchange rate fell below the key technical support level of 1.50, brushing a 20-month low.
The US Dollar could extend gains against the Pound later today as the US publishes influential Advance Retail Sales data for February.
Sales declined by -0.8% in January, but a 0.3% rebound in consumer spending is anticipated.
The Pound Sterling to Euro (GBP/EUR) exchange rate fell to a low of 1.4097
A stronger figure than this may push the GBP/USD pairing to fresh lows.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast: UK Trade Data, Eurozone Industrial Production Ahead
This morning’s final German inflation data for February had little impact on GBP/EUR trading as it confirmed previous estimates of month-on-month price growth of 0.9% and an annual figure of 0.1%.
According to the Financial Times; ‘Germany’s economy has recovered strongly from the mid-year wobble in 2014, as record low unemployment and falling prices has encouraged consumer spending. However, falling energy prices caused by the oil price rout has weighed heavily on inflation rates across the currency area, including its biggest and strongest member. This has encouraged the European Central Bank this week to launch a 60 billion Euro per month bond-buying programme. There are already signs that the ECB’s action, and the recent rebound in oil prices, is changing investors inflation expectations.’
In the hours ahead the UK’s trade balance figures could inspire some Pound to Euro exchange rate volatility.
Economists expect the nation’s trade deficit to have narrowed from -£2895 to -£2300.
A widening of the deficit would be Pound-negative, particularly in the run up to the general election.
The Eurozone’s industrial production report will also be of interest to GBP/EUR traders.
A 0.2% month-on-month increase in production is expected, which would take January’s annual figure to 0.1%.
A speech to be given by BoE chief Mark Carney at 12:45 GMT could prove a catalyst for additional fluctuations before the close of the European session.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trading in the region of 0.7079, the Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.4977, the US Dollar to Pound Sterling (USD/GBP) exchange rate is trading in the region of 0.6676, the Pound Sterling to Euro (GBP/EUR) exchange rate is trending in the region of 1.4125