The Pound Sterling to Euro (GBP/EUR) exchange rate has dropped today in spite of a relatively normal state for the world stock markets.
Positive UK Growth Fails to Dislodge Rising Euro in Pairing
The Pound Sterling’s (GBP) -0.4% devaluation against the Euro (GBP/EUR) today comes as the world stock markets get back to normal following a week of turmoil and exchange rate upsets beginning with ‘Black Monday’. Conditions are relatively close to those at the end of last week; the Euro (EUR) was rising then on the news that a Greek bailout had been approved, so the same conditions have been seen today for the common currency.
UK GDP growth today met entirely with expectations, which while positive hasn’t inspired confidence in Sterling. The Pound may yet rebound against the Euro later on today if the German CPIs also come in with uninspiring results as has been predicted.
The Pound Sterling to Euro (GBP/EUR) exchange rate has risen for a third day in a row today, seeing a 0.4% advantage for Sterling (GBP) against the common currency (EUR).
UK GDP Result may Widen GBP/EUR Gap Tomorrow
The Pound Sterling (GBP) has risen against the Euro (GBP/EUR) today and elsewhere has seen healthy gains; the only major losses have been by -0.6% against the Turkish Lira (GBP/TRY) and by -1.8% against the Russian Ruble (GBP/RUB).
Although global stock markets appear to be improving today, it remains possible that they will fail to completely stabilise by Friday, meaning that a rise above forecasts in the UK Q2 GDP results tomorrow will see the Pound remain dominant against the Euro (EUR) during the weekend.
A rise in the Pound Sterling to Euro (GBP/EUR) exchange rate today continues to be a symptom of unsettled stock markets as the global economic chasm remains open for a third day running.
GBP/EUR Exchange Rate News: Slow Data Day prevents Euro Rebound against the Pound
The Pound Sterling (GBP) has fractionally extended its gains against the Euro (GBP/EUR) since yesterday, seeing a rise of 0.6%. This comes after the Pound plummeted on Monday only to (mostly) recover yesterday.
This recovery has continued today with an overall rise in the Pound’s performance. Gains for Sterling included a 0.8% increase against the Czech Koruna (GBP/CZK), a 1% advance against the Hungarian Forint (GBP/HUF) and a 1.2% advantage against the Israeli New Shekel (GBP/ILS). Things have not been entirely positive however, as the Pound has fallen by over -0.5% against the Australian Dollar (GBP/AUD) and the Canadian Dollar (GBP/CAD) and by -0.8% against the Mexican Peso (GBP/MXN).
The UK economy received a boost today when the Loans for House Purchases figure for July came in with a rise of 46033 up from the forecast 46000.
Euro remains Soft as Rising US Dollar Demand Reduces Common Currency’s Appeal
The Euro (EUR) has declined overall today as it continues to reel from a hawk-turned-dove performance between Monday and Tuesday. The single currency has fallen by over -0.9% against the Australian Dollar (EUR/AUD), the Canadian Dollar (EUR/CAD), the New Zealand Dollar (EUR/NZD) and the South African Rand (EUR/ZAR) today. Its only gains have been a narrow trending against the Japanese Yen (EUR/JPY) and a 0.2% rise against the Polish Zloty (EUR/PLN).
This comes as stock markets continue to roil from the apparent Chinese ‘slowdown’ for the third day running. The Euro’s reversal of fortunes today comes as the US Dollar (USD) enjoys a level of stability similar to the Pound; as the safe-haven currency is up and the common currency is down, this is a clear sign of a lessening effect from the stock market situation, although events in Beijing and across the world remain key influencers on the global currency pairings.
GBP/EUR Exchange Rate Forecast: Prime position to be Decided by Praet and US Goods Orders
As the only other UK data release today is the low-impact CBI Reported Sales figure for August, the future of the GBP/EUR pairing is to be decided by what European Central Bank Executive Board member Peter Praet has to say about the Eurozone economy today and whether the US Durable Goods Orders figure for July falls or rises.
Any support for the Euro from Praet’s speech will likely come soon after it is delivered, but the US result will be worth taking with a pinch of salt. This is because September rate hike hopes have been abandoned and given the astonishing losses posted by the ‘Greenback’ on Monday, positive results have had a diminished effect on the US Dollar’s performance, so even a rise above the predicted -0.4% decline may not have much of an impact on the pairing.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3661 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7322 today.