The Pound Sterling (GBP) has risen by 0.7% against the Euro (GBP/EUR) today; this is due to both positive postings in this morning’s UK results (Industrial and Manufacturing Production in September) and negative ones for Germany’s Industrial Production output in August.
UK GDP Estimate to Decide any Further GBP/EUR Movement Today
The next result coming up for the pairing will be the UK NIESR GDP Estimate for September; naturally, the higher the posting, the better for supporters of Sterling (GBP).
The Pound Sterling (GBP) has fallen slightly against the Euro (GBP/EUR) today, although today’s economic releases have actually been supportive of a Sterling rise in the pairing.
Second Chance for German Support of Common Currency comes Tomorrow
While it failed to trigger a Sterling (GBP) advantage, today’s UK annual New Car Registrations in September figure has come out positive for the Pound, with the Society of Motor Manufacturers and Traders observing that the figure of over 462k has been the best recorded in September on record. Sterling has also been helped out by the yearly German Factory Orders in August figure falling far short of expectations.
In the future, GBP/EUR movement will likely come from the release of tomorrow’s annual German Industrial Production figure for August, which has been forecast to rise on the previous result.
The Pound Sterling to Euro (GBP/EUR) exchange rate has fallen today following the release of a pair of influential UK PMIs for September.
GBP/EUR Exchange Rate News: Sterling takes a Tumble as Tourism Figures Dry Up
The Pound Sterling to Euro (GBP/EUR) exchange rate has fallen by -0.3% today; with the Pound seeing even greater declines against other currencies. These include -0.5% against the Mexican Peso (GBP/MXN), -0.6% against the New Zealand Dollar (GBP/NZD) and the South African Rand (GBP/ZAR) and -0.7% against the Russian Ruble (GBP/RUB). On the (minor) positive side, Sterling has posted a 0.3% gain against the Japanese Yen (GBP/JPY).
The principle reason for Sterling’s poor showing today has been a slowdown in the UK Services PMI figure; the previous posting for August was 55.6 points, but a drop to 53.3 today has worried investors, although a more pragmatic analysis of the figures could be that the summer tourist season has wound down to a close, coupled with a fairly cold and wet period during that time anyway.
Steady but Slow Eurozone Growth keeps Investors Happy, EUR/GBP Rises in Consequence
The Euro (EUR) has had a far more supportive faring than the Pound (GBP) so far today, rising by 0.3% against Sterling (EUR/GBP) and advancing by over 0.4% against the Swiss Franc (EUR/CHF) and the Japanese Yen (EUR/JPY). Losses have been most strongly represented by declines of over -0.5% against the South African Rand (EUR/ZAR) and the New Zealand Dollar (EUR/NZD).
Although today’s Eurozone results have not been encouraging for investors, with Services and Composite PMIs indicating slowed growth along with Eurozone Retail Sales, the Euro has risen regardless, likely on the reasoning that although Eurozone growth is slow, the multi-nation currency remains a relatively stable one in the face of global economic concerns.
GBP/EUR Exchange Rate Forecast: German Releases to Rule the Field Tomorrow
Although both the UK and the Eurozone have economic publications due tomorrow, the latter holds a distinct advantage in terms of both quality and quantity. The only UK result due is the low-impact annual New Car Registrations for September; the biggest incoming Eurozone results will be the German Factory Orders for August as well as the nation’s Construction and Retail PMIs. As of writing, the only predictions made were positive ones for the German Factory Orders; if accurate, this is likely to bolster Euro support considerably.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3491 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7413 today.