Pound Sterling to Euro (GBP/EUR) Exchange Rate Rallies on ‘Grexit’ Fears
The news that Germany had rejected a Greek proposal for a six-month aid extension increased expectations that the Hellenic nation might leave the Eurozone and the Euro broadly softened as a result.
The GBP/EUR pairing was able to achieve a high of 1.3619 before the publication of UK retail sales data.
As the UK report showed a steeper-than-forecast decline in sales in January, the Pound returned to trending around the day’s opening levels against the Euro.
However, if today’s Eurogroup gathering fails to yield positive results, Sterling could reassert its dominance over the common currency before the weekend.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trading in the region of 1.3559
GBP/EUR Exchange Rate Lingers at 1.3550 Level
The Pound Sterling to Euro (GBP/EUR) currency pair continued trending around the day’s opening levels after it was announced that Germany had vetoed the Greek proposal for a six-month assistance package.
German Finance Minister Wolfgang Schaeuble, who isn’t known for mincing his words, asserted that the Greek request was little more than an attempt to ‘bridge financing, without meeting the requirements of the programme. The letter does not meet the criteria agreed upon in the Eurogroup on Monday.’
As resistance from Germany had largely been expected, the development had minimal impact on GBP/EUR trading.
Pound Sterling (GBP) Supported by more Upbeat UK Data
As the European session progressed the Pound derived more support from better-than-expected data from the Confederation of British Industry.
The CBI Trends Selling Prices index jumped from -6 to 8 in February (a decline to -7 had been expected) while the Trends Total Orders measure advanced from 4 to 10. A smaller improvement to 6 had been anticipated.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3554
The Pound Sterling to Euro (GBP/EUR) exchange rate continued trading bullishly on Thursday as there were finally some developments in the Greek debt situation.
Pound Sterling to Euro (GBP/EUR) Exchange Rate News: Pound Boosted by BoE Rate Hike Bets
The Pound Sterling to Euro (GBP/EUR) exchange rate pushed to a seven-year high on Wednesday as the UK’s employment figures smashed forecasts and brought forward Bank of England (BoE) interest rate hike expectations.
The jobs data was uniformly positive, with the UK adding significantly more positions than expected, the unemployment rate declining, average earnings increasing and the number of people applying for unemployment benefits falling.
The Pound Sterling to Euro (GBP/EUR) exchange rate achieved a high of 1.3562
As well as achieving fresh multi-year highs against the Euro, the Pound advanced to a one-month high against the US Dollar.
Further gains against the ‘Greenback’ were posted following the publication of rather dovish meeting minutes from the Federal Open Market Committee (FOMC).
Euro (EUR) Declines as Greece Granted Bailout Extension
The Euro was able to recoup some lost ground against Sterling on Thursday, with the EUR/GBP pairing advancing by 0.2% as the Eurozone’s Current Account report showed a widening in the non-seasonally adjusted surplus.
However, early in Thursday’s European session it was announced that Greece has asked for a new six month loan agreement.
The nation is unwilling to agree to the continuation of its current programme (scheduled to run out at the end of the month) and is instead requesting short-term financing.
The development saw industry expert Raoul Ruparel note; ‘The biggest areas of disagreement are on labour market and pension reforms enshrined under the current bailout. Greece rejects these almost entirely while they are seen as vitally necessary by the Eurozone. It could be possible to kick these areas into the long grass but they will no doubt resurface later on as any funding or debt relief will probably be ties to such reforms.’
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast: ECB Minutes, Eurozone Confidence in Focus
The Pound Sterling to Euro (GBP/EUR) exchange rate could experience additional fluctuations later today following the publication of the Confederation of British Industry’s Trends Selling Prices/Trends Total Orders data.
That being said, the release of minutes from the European Central Bank’s latest policy meeting could prove to be more influential.
The Pound Sterling to Euro (GBP/EUR) exchange rate fell to a low of 1.3495
Investors with an interest in the GBP/EUR pairing will also be focusing on the Eurozone’s Consumer Confidence Index.
The sentiment measure is believed to have increased from -8.5 to -7.5 in February. An improvement on this would be Euro supportive.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trading in the region of 0.7382
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5438
The US Dollar to Pound Sterling (USD/GBP) exchange rate is trading in the region of 0.6475
The Pound Sterling to Euro (GBP/EUR) exchange rate is trending in the region of 1.3543