The Pound Sterling to Euro (GBP/EUR) exchange rate has rallied today after the tremendous losses of ‘Black Monday’ were not repeated to anything near yesterday’s astonishing levels.
Opinions on China remain Fluid, Confidence in Sterling Rises over Flat Euro
The Pound Sterling (GBP) has gained by 0.5% against the Euro (GBP/EUR) today after the world’s stock markets showed some signs of recovery this morning (however small). The common currency (EUR) managed to post some extraordinary gains yesterday, but today has seen a reversal of fortunes: the Euro has fallen against all but the Swiss Franc (EUR/CHF) and the Japanese Yen (EUR/JPY).
The situation in China remains a deciding factor for global currency pairings; according to the BBC’s Economics Editor Robert Peston, ‘China’s economy is undergoing an extraordinarily important transition’.
The Pound Sterling to Euro (GBP/EUR) exchange rate has declined further since earlier, as the impact of the ‘Black Monday’ event has had opposite effects on both currencies.
Pound’s Performance is Highly Sporadic as Euro takes full Advantage of Unique Opportunity
The Pound Sterling (GBP) has fallen by -1.4% against the Euro (GBP/EUR) today, while the Euro (EUR) has extended its gains enormously, seeing a rise of 3.9% against the Australian Dollar (EUR/AUD), 2.9% against the Indian Rupee (GBP/INR), 3.4% against the South African Rand (EUR/ZAR) and 4.7% against the New Zealand Dollar (EUR/NZD).
This comes after global stock markets unexpectedly nosedived into the red following serious concerns that China’s apparent economic slowdown would infect neighbouring Asian currencies.
The Pound Sterling to Euro (GBP/EUR) exchange rate has dropped considerably today after the results of an ONS data release showed that UK only spends 1.1% of its GDP on research and development.
GBP/EUR Exchange Rate Crumbles as Gloomy UK Manufacturing Survey shows Out-of-Touch Industry
The Pound Sterling to Euro (GBP/EUR) exchange rate has fallen by -1.1% today and has made major gains and losses elsewhere. The Pound has fallen by over -1% against the Czech Koruna (GBP/CZK), the Danish Krone (GBP/DKK), the Hungarian Forint (GBP/HUF) and the Japanese Yen (GBP/JPY). However, the Pound’s rises have been equally large, with advances of 1.1% against the New Zealand Dollar (GBP/NZD), 1.9% against the South African Rand (GBP/ZAR) and 2.6% against the Russian Ruble (GBP/RUB) being recorded.
This extremely mixed bag of results has been influenced by the news that almost a third of UK companies do not think that they are doing enough to match the innovation and designs of their foreign competitors, according to a survey by the EEF. This correlated with a separate release by the Office of National Statistics (ONS) which reported that UK R&D spending was only around 1.1% of its GDP, compared to an average of 1.6% by OECD countries and 2.02% by Germany. Lee Hopley, a Chief Economist at EEF said that ‘Shortages of expertise, equipment and finance are holding manufacturers back’.
Euro Retains Advantage against Sterling (EUR/GBP) as Eurozone Stability seems Likely
The Euro’s (EUR) performance today has been virtually the opposite of the Pound’s (GBP), as the common currency has risen across the board. This follows on from Friday’s high that was triggered by a move towards a positive figure in the Eurozone Consumer Confidence survey score for August. A statement by Finnish Minister of Economic Affairs Olli Rehn added to optimism in the single currency as Rehn advocated both national and international reform for Eurozone economic policies following the successful closure of the third Greek bailout last week.
The Euro rose by 1.1% against the Pound Sterling (EUR/GBP) today and saw greater gains of more than 2.1% against the New Zealand Dollar (EUR/NZD), the Australian Dollar (EUR/AUD) and the South African Rand (EUR/ZAR).
Exchange Rate Forecast: EUR/GBP may rise further if German GDP Result exceeds Predictions
As there are no major UK data releases today or tomorrow, it seems probable that the Pound (GBP) will continue its current decline against the Euro (GBP/EUR) for the near-future. The German annual Q2 GDP figures are due in tomorrow and a 1.6% increase has been forecast. If these results exceed expectations, the common currency (EUR) is expected to widen the current gap between the two currencies.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3671 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7319 today.