The Pound Sterling (GBP) has reached a more neutral point against the Euro (GBP/EUR) today, mainly due to further Greek bailout money not going down with unanimous confidence among investors.
CBI Figures to Provide First Direct GBP Movement of the Week
The Pound (GBP) is likely to be moved in the near-future by the release of the CBI reported sales figures for November, that are scheduled for release tomorrow.
The Pound Sterling to Euro (GBP/EUR) exchange rate ended last week trending in a narrow range, although for the most part the Pound (GBP) was in an advantageous position against the Euro (EUR).
GBP/EUR Exchange Rate News: Disappointing Borrowing Figures put Sterling in a Sticky Situation Last Week
The Pound Sterling (GBP) was marked by its fluctuations last week, where it rose and fell dramatically on a practically daily basis. Monday’s annual Rightmove House Prices for November rose to 6.2%, which actually saw the Pound drop on fears of a growing housing bubble. On Tuesday, the value of the Pound was restored somewhat when the October Inflation Rate figures came in to show a balance of growth and contraction.
Both Thursday and Friday saw the week end on a low note for the Pound. Thursday’s contribution to GBP movement was a set of negative October Retail Sales, while on Friday the level of UK Government Borrowing didn’t fall to anywhere near the expected figures. The borrowing results were particularly damaging to the current government’s ambitions, as more borrowing means more cuts to pay back the amount; given that recent terrorist events have made high defence spending a must, this is only likely to result in more cuts and strains on other UK sectors.
Paris Aftermath and ECB Dovishness saw Euro (EUR) Fare Poorly for Most of Last Week
The previous week has not at all positive for the Euro (EUR); the single currency began on a low note due to the lingering concern surrounding the security of the Eurozone after last week’s attacks in Paris. Even though Eurozone inflation saw growth for the annual Core October field, the common currency failed to gain on this news. Poor ZEW Survey scores on Tuesday continued this downtrend.
Wednesday was the exception in terms of the Euro’s performance, as it briefly gained after European Central Bank (ECB) Executive Board member Yves Mersch outlined his plans to unify and stabilise the Eurozone, but this optimism was short-lived and Thursday once again saw the Euro on the slide. Friday was in effect the final nail in the coffin, which came after ECB President Mario Draghi all-but-guaranteed that further quantitative easing (QE) would be necessary in December in order to combat the currency bloc’s perpetually low inflation rates.
GBP/EUR Exchange Rate Forecast: Mass of Eurozone Data could Outweigh Positive UK GDP Result This Week
Both the UK and the Eurozone have high-impact economic releases due for release in the week to come, although based on a numbers standpoint, the latter currency has the clear advantage.
For the UK, notable data will primarily be focused on Wednesday and Friday, respectively in the form of the BBA Loans for House Purchases in October and the Q3 GDP figures. At the time of writing, no forecasts had been made for either result.
The Eurozone’s week of data will begin on Monday with Germany and the Eurozone’s Manufacturing, Composite and Services PMIs for November. This will then be followed on Tuesday by Germany’s Q3 GDP results and IFO Surveys of Business Climate, Current Assessment and Expectations for November.
On Thursday and Friday, Germany will again be in the spotlight with the Gfk Consumer Confidence Survey for December and the annual Retail Sales figures covering October.
GBP, EUR Exchange Rates
Close to the close of the European session on Friday, the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4270 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7009.