The Pound Sterling (GBP) has declined slightly against the Euro (GBP/EUR) today, in spite of the Bank of England (BoE) minutes yesterday providing a boost across the board for Sterling.
Optimistic BoE Inflation rate Estimate may Trigger Second Sterling Uptrend in as many Days
The Pound Sterling (GBP) will be most affected in the GBP/EUR pairing by the imminent BoE inflation rate estimate for progress. The BoE’s target rate is 2%, although given the history of low progress for the rate, today’s result may just be ‘business as usual’, as was the overall tone of the BoE minutes yesterday.
A rise has been posted in the Pound Sterling to Euro (GBP/EUR) exchange rate today, although the Pound (GBP) has been faltering elsewhere ahead of a crucial decision by the Bank of England (BoE).
GBP/EUR Exchange Rate News: Yesterday’s UK Results may have Soured BoE MPC Appetites for Early Rate Rise
The Pound Sterling to Euro (GBP/EUR) exchange rate has risen by 0.3% today; against other pairings, the Pound (GBP) has performed inconsistently, rising by over 0.4% against the Japanese Yen (GBP/JPY), the Polish Zloty (GBP/PLN) and the Romanian Leu (GBP/RON), but crashing by more than -0.4% against the South African Rand (GBP/ZAR), the Canadian Dollar (GBP/CAD) and the New Zealand Dollar (GBP/NZD) and by -1.3% against the Australian Dollar (GBP/AUD).
This lack of consistency for the British Currency can be attributed to a general uncertainty over the results of the imminent BoE UK interest rate decision. Yesterday saw the UK trade deficit increase along with shortfalls in the annual Industrial and Manufacturing Production figures for July, yet BoE Governor Mark Carney also recently stated that the Chinese stock market crash at the end of last month had had no effect on the BoE Monetary Policy Committee’s (MPC) decision process regarding the timing of a rate rise.
Euro to Pound Sterling Conversion Rate Tanks as Juncker Calls ‘No Dice’ On Greek Bailout Modification
The Euro (EUR) has suffered considerably today with its only major gain being a 0.3% rise against the Japanese Yen (EUR/JPY). In other pairings, the Euro has fallen by -0.3% against the Pound Sterling (EUR/GBP), over -0.7% against the South African Rand (EUR/ZAR), the Canadian Dollar (EUR/CAD) and the New Zealand Dollar (EUR/NZD). As with the Pound, the Euro has fared worst against the Australian Dollar (EUR/AUD), dropping by -1.6%.
The biggest hit to confidence in the Euro was delivered at the hands of European Commission (EC) President Jean Claude-Juncker, who set things painfully straight over the EC’s stance on Greece’s future. Speaking in Strasbourg, Juncker warned that ‘I want the [bailout] programme to be respected by all future Greek governments. We are serious and for real. We need respect for arrangements that have been reached’. How this will go down among supporters of Former Greek leader Alexis Tsipras, who has themed his second election campaign of the year on altering the conditions of the third Greek bailout, remains to be seen.
GBP/EUR Exchange Rate Forecast: High Noon for BoE Decision
As mentioned earlier, the release of the BoE minutes for the UK interest rate decision is the hot news of the day; any signs of bullishness from BoE MPC members will likely boost demand for Sterling (GBP) enormously, while a more neutral or even cautious outlook can be expected to have the precise opposite effect.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3737 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7280 today.