The Pound Sterling (GBP) has declined by a fractional amount against the Euro (GBP/EUR) today, something caused by a general lack of confidence in Sterling ahead of the Bank of England (BoE) Interest Rate Decision due this afternoon.
Investor Expectations Optimistic for Impending German GDP Stats
The Euro (EUR) may extend its current small advantage against the Pound Sterling (EUR/GBP) imminently, as the positively forecast German GDP result for the entirety of 2015 is due for release shortly.
The Pound Sterling (GBP) has advanced by a minor amount against the Euro (GBP/EUR) today, although this movement is likely only on account of the Eurozone printing some disappointing pieces of domestic data.
Eurozone Industrial Results Worse-than-Expected Today
The only notable Eurozone data so far has concerned the currency bloc’s Industrial Production on the month and the year in November; although forecasts had been for declines in both situations, the actuality saw a fall from 2% to 1.1% on the year and a less impactful but still detrimental decline from 0.8% to -0.7% on the month.
The Pound Sterling (GBP) has only worsened in value over the course of the day, having hit -0.8% against the Euro (GBP/EUR) most recently.
Trouble on All Sides for UK Economy This Week, with Carney Silence Latest Issue
The Pound Sterling (GBP) has been put in a highly undesirable position by speculation today, as in addition to the morning seeing some highly detrimental data releases, the Pound has also been softened by Bank of England (BoE) Governor Mark Carney not discussing Thursday’s UK Interest Rate Decision today. Adding to this New Year’s misery has been the estimated loss of -15% of oil industry jobs, something that is sure to have had a negative effect in the north of the country.
The Pound Sterling (GBP) has failed to improve on its prior exchange rate against the Euro (GBP/EUR) today, having remained at a highly disadvantageous -0.7%.
‘Cataclysmic’ Year Ahead for Global Markets, say RBS
With far-reaching predictions being made for the global economies, such as crude oil falling to $16 per barrel and stock markets getting a -20% loss in value, Royal Bank of Scotland have done little to ease tensions by urging customers to ‘Sell everything except high quality bonds’. Coupled with this morning’s depressing UK Production results, it seems unlikely that Sterling is going to make a major comeback anytime soon.
The Pound Sterling to Euro (GBP/EUR) exchange rate has crashed today, along with most of the other Pound (GBP) pairings. This has come about after far worse-than-expected results from the morning’s UK data.
GBP/EUR Exchange Rate News: UK Production Hits the Rocks
The Pound Sterling (GBP) has been crippled this morning by the much-anticipated Industrial and Manufacturing Production results on the month and the year in November. Speaking annually, the industrial result has slowed down from 1.7% to 0.9% while Manufacturing worsened considerably from -0.2% to -1.2%. On the month, both fields hit negatives, with the industrial printing falling from 0.1% to -0.7% and the manufacturing figure reprinting a detrimental -0.4%.
Among the Pound Sterling’s losses today have been -0.4% against the Euro (GBP/EUR), -0.8% against the Norwegian Krone (GBP/NOK) and -1.6% against the South African Rand (GBP/ZAR). These sizable declines are a far cry from yesterday’s relatively strong Sterling performance.
Euro (EUR) Puts on Acceptable Showing Today despite Scant Economic Publications
The Euro (EUR) has managed to edge slightly higher against several of its rivals today, although Eurozone data has been fairly thin on the ground so far. The only direct data to speak of has been low-impact, being comprised of Lithuania’s monthly and yearly PPI results for December, which have fallen on the month but improved marginally on the year.
The Euro has risen by 0.4% against the Pound Sterling (EUR/GBP) today and has also made a smaller advance of 0.3% against the Polish Zloty (EUR/PLN).
GBP/EUR Exchange Rate Forecast: Speeches from ECB and BoE Officials Due Shortly
Both the UK and the Eurozone will have impactful economic events taking place in the near-future, although the UK’s news may potentially have the greater say on the movement of the GBP/EUR pairing.
The Eurozone’s contributions will be speeches from European Central Bank (ECB) officials Peter Praet (this morning) and Sabine Lautenschlaeger (this evening). Although both officials have the potential to generate a significant amount of Euro (EUR) movement with their words, Praet will simply be attending a discussion during the farewell symposium of Banque de France Governor Christian Noyer, while Lautenschlaeger is more likely to trigger movement in her yet-unknown capacity.
The UK’s events will come this afternoon, in the form of the NIESR GDP Estimate for December and a speech from Bank of England (BoE) Governor Mark Carney. Naturally, no forecasts have been made for the NIESR prediction, but as Carney is actually just speaking at Noyer’s send-off, the ‘high impact’ status of this event may have been exaggerated.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3354 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7490 today.