Pound Sterling to Euro (GBP/EUR) Exchange Rate Fluctuates after Eurozone Data
After Wednesday’s UK Services PMI printed below expected levels, the Pound gave up some of its recent gains against the Euro.
Better-than-forecast retail sales figures for the Eurozone also had an impact on GBP/EUR trading.
However, after German Factory Orders were shown to have fallen by more-than-expected, the Pound recouped losses.
While the Bank of England’s policy decision is unlikely to spark any movement in the currency market, the European Central Bank’s announcement could inspire Pound to Euro fluctuations, depending on the tone adopted by ECB chief Mario Draghi.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3800
Pound Holds Losses after Construction Report
The Pound extended and held losses against the Euro during the European session in spite of the UK’s Construction PMI printing at 60.1, higher than forecast.
The GBP/EUR pairing returned to trending at around the 1.3710 level before the release of the UK’s Services PMI.
If that gauge also shows improvement, Sterling may recoup declines as the week progresses.
Pound Sterling to Euro (GBP/EUR) Exchange Rate sheds 0.25% despite Manufacturing Improvement
Better-than-expected manufacturing data for Germany and Italy helped the Euro advance on the Pound during the European session.
The German Manufacturing PMI printed at 51.1 in February, bettering the expected reading of 50.9.
Similarly, the Italian gauge advanced from 49.9 to 51.9, exceeding estimates for a figure of 50.1.
Earlier in the session UK data also disappointed forecasts, with Nationwide House Prices declining by -0.1% on the month instead of rising 0.3% as projected.
Later reports showed lower-than-expected UK mortgage approvals and below-forecast consumer credit.
However, Pound gains were limited as the UK’s own manufacturing PMI printed at 54.1 instead of 53.4.
Further GBP/EUR movement could occur later today as the Eurozone releases inflation and employment stats.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trading in the region of 1.3753
The Pound Sterling to Euro (GBP/EUR) exchange rate may advance to another fresh high this week as several major central banks deliver their interest rate decisions.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast: Greek News, BoE Speculation Boosts Pound
Sterling enjoyed another bullish run of trading this week, with the British Pound to Euro (GBP/EUR) exchange rate advancing to a new seven-year high.
The GBP/EUR currency pair climbed above the 1.37 level as concerns regarding the feasibility of Greece’s reform proposals and the European Central Bank’s (ECB) quantitative easing programme reduced demand for the Euro.
Although the German government approved the measures presented by Greece, giving the go-ahead for the nation’s 4-month bailout extension, various officials have voiced concerns regarding what might occur in April.
German Finance Minister Wolfgang Schaeuble has been particularly vocal when it comes to expressing doubts over Athens commitment to meeting its debt obligations, and before the weekend he stressed that he would not allow the Greek government to blackmail its creditors.
He commented; ‘We Germans should do everything to keep Europe together as far as we can and bring it together again and again. We’re not talking about new billions for Greece, we’re not talking about any changes to this programme – rather it’s about providing or granting extra time to successfully end this programme. [Solidarity in the Eurozone] doesn’t mean you can blackmail each other.’
On Friday it was announced that Eurozone authorities will be using the next four months to decide whether Greece needs a credit line, a third bailout programme or a different kind of aid arrangement.
Whilst it was intimated that officials will be working closely with the Greek government in order to ensure that the demands of the nation’s populace are attended to, the acceptance of further austerity measures may be a hard fought battle.
The common currency was placed under further pressure as reports emerged that the European Central Bank (ECB) is struggling to source the bonds needed to fund its hotly anticipated quantitative easing programme.
The Pound Sterling to Euro (GBP/EUR) exchange rate was also buoyed by comments issued by several key Bank of England officials, including Governor Mark Carney and policymaker Martin Weale.
Early in the week, Carney reiterated points made in both the BoE’s inflation report and policy meeting minutes, asserting that the central bank expects the rate of inflation to return to the 2% target within the next two years and that employers should pre-empt this by increasing wages.
Meanwhile, Weale asserted that interest rates might be increased sooner than markets currently expect.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast: ECB, BoE Interest Rate Decisions Ahead
This week the Pound Sterling to Euro (GBP/EUR) exchange rate is likely to experience further movement as both the European Central Bank (ECB) and Bank of England (BoE) deliver their interest rate announcements.
While the BoE’s decision is expected to be fairly predictable, and not generate much volatility, the ECB’s policy announcement will be of greater interest, particularly given the recent developments in the Eurozone.
Furthermore, the Pound could ascend to new highs against the Euro if the week’s UK Manufacturing, Services and Construction PMI’s indicate that the nation’s primary sectors continued to expand at a solid pace in February.
On Monday morning the Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3778