The Pound Sterling (GBP) has fallen by -1.1% against the Euro (GBP/EUR) today, something mainly due to UK news disappointing speculators rather than anything of particularly positive note coming from the Eurozone.
Last Weekly UK Data Release may Trigger Uptrend Thanks to Negative Forecasts on German Results
The Pound Sterling (GBP) has declined in value today due to both a lingering dissatisfaction over yesterday’s UK debt increase and the news today that the Independent Evaluation Office (IEO) established by Bank of England (BoE) Governor Mark Carney has failed to report in the year since it was created. This has damaged confidence in both the BoE and the Pound considerably, as the lack of any discernible activity from the BoE’s regulatory body has called Carney’s former ‘Glasnost’ attitude towards BoE dealings into question.
Tomorrow, several German Confidence Surveys are due in, as well as the UK BBA Loans for House Purchases figure. Predictions for the former set have been pessimistic while the opposite is true of the latter, therefore it remains possible for a Sterling uptrend to occur on the last day of UK data.
The Pound Sterling (GBP) has dropped by -0.3% against the Euro (GBP/EUR) today, just one of a number of losses for Sterling on a day marked by the expansion of the UK debt above estimates.
Imminent Eurozone Consumer Confidence Score could offer Relief to GBP ahead of Eurozone PMIs Tomorrow
The most immediate piece of data affecting the GBP/EUR pairing will be the Eurozone Consumer Confidence Score for September today; expectations are for a drop from -6.9 points to -7, so anything beyond the predicted decline may just be enough to give Sterling (GBP) the edge it needs to advance on the Euro (EUR) today. Unfortunately, this may just be a brief respite as tomorrow brings the release of a large number of Eurozone PMIs.
The Pound Sterling to Euro (GBP/EUR) exchange rate has risen marginally today, although Sterling (GBP) has seen more significant advances elsewhere owing to Pound confidence increasing as Chancellor George Osborne continues his weekly visit to China.
GBP/EUR Exchange Rate News: ‘Our Man in Beijing’ Attracts Chinese Input, UK House Prices also Up
The Pound Sterling (GBP) has trended positively against the Euro (GBP/EUR) today, just one of a number of advances for the Pound. The most notable of these have been by over 0.6% against the Australian Dollar (GBP/AUD), the Thai Baht (GBP/THB) and the Singapore Dollar (GBP/SGD), while greater gains of more than 1% have been seen against the New Zealand Dollar (GBP/NZD), the Hungarian Forint (GBP/HUF) and the South African Rand (GBP/ZAR).
This show of support in the Pound has come from positive UK developments at home and abroad; the domestic monthly and yearly Rightmove House Prices for September have both risen, and Osborne’s securing of a £2bn Chinese investment in Hinkley Point C nuclear power plant has only added to the optimism caused by these results.
‘Did you miss me?’ – Alexis Tsipras Returns as Greek Prime Minister, Euro (EUR) Exchange Rate Stable
The biggest Eurozone news today is that Alexis Tsipras’ Syriza party has claimed control of the Greek parliament for the second time this year, forming a coalition with the Independent Greeks party. Although Syriza won by over 35% of the vote, compared to the over 28% held by New Democracy, their closest rivals, the victory was hollowed by the fact that only 56.5% of the population turned out to vote. Eurozone news today has seen the German annual and monthly Producer Prices fall by -1.7% and -0.5% respectively.
The Euro’s greatest gains today have been by over 0.7% against the Australian Dollar (EUR/AUD), the New Zealand Dollar (EUR/NZD) and the South African Rand (EUR/ZAR); by contrast, a loss of -0.2% has been seen against the Indian Rupee (EUR/INR).
GBP/EUR Exchange Rate Forecast: UK Government Spending to Determine Pairing Leader Tomorrow
The Pound Sterling (GBP) has its largest set of relevant results of the week out tomorrow, in the form of the UK Public Sector Net Borrowing figures for August, among other related releases. As Osborne’s Chinese visit is ongoing, it is possible that any further UK-beneficial developments will improve the Pound’s faring against the Euro (GBP/EUR) before tomorrow.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3734 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7281 today.