Pound Sterling to Euro (GBP/EUR) Exchange Rate News: Pound Softer before Trade Data
The Pound Sterling to Euro (GBP/EUR) exchange rate briefly edged back below the 1.41 level to trade in the region of 1.4097 before the publication of the latest batch of UK trade figures.
If the UK’s deficit is shown to have narrowed, as economists expect to be the case, the Pound could recoup losses in the hours ahead.
Investors will also be taking an interest in the Eurozone’s Industrial Production report.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trading in the region of 1.4135.
GBP/EUR Exchange Rate News – Greece Threatens Germany, UK Data Falls Short
The GBP/EUR currency pair surged above 1.42 over the course of European trading as Greece threatened to seize German property as a form of reparation after the latter nation denied owing funds dating back to the Second World War.
However, Sterling later pared its initial gains as the UK’s GDP estimate for the three months through February was released.
The UK economy was shown to have expanded at a rate of 0.6%, unchanged from the negatively revised figure for the three months through November.
Although the Pound is likely to continue trading in a stronger position against the Euro in the day’s ahead, the common currency could receive a modest boost if the Eurozone’s industrial production report shows improvement tomorrow.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.4130 – up 0.3% on the day’s opening levels.
The GBP/USD currency pair, meanwhile, touched its lowest level in 20 months after sliding below the key 1.50 support boundary.
GBP/EUR Exchange Rate News – Draghi Comments See GBP Hit 1.42, UK Production Disappoints
Although the UK’s Manufacturing and Industrial Production reports printed below expected levels on Wednesday, the Pound Sterling to Euro (GBP/EUR) exchange rate extended its daily gain to over 1.0%, taking the pairing above 1.4224.
Greek assertions that Germany used ‘legal tricks’ to get out of paying Second World War reparations to the Hellenic nation kept the Euro pressured, as did comments from European Central Bank (ECB) officials regarding the projected duration of stimulus measures in the region.
Both ECB President Mario Draghi and economist Peter Praet remarked on the central bank’s quantitative easing programme today, implying that the measures will help the Eurozone record the fastest pace of economic growth for seven years.
However, the policymakers also implied that QE would extend beyond September of next year, continuing until there is a ‘sustained adjustment’ in inflation.
The diverging policy paths being pursued by the ECB and Bank of England (BoE) are helping the Pound maintain its bullish relationship with the Euro.
Manufacturing production in the UK was shown to have fallen by -0.5% on the month in January (rather than rising the 0.2% expected) while industrial production slid by -0.1% in the same period.
The results had little impact on the Pound, but today’s UK NIESR GDP estimate could provoke GBP/EUR volatility.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trading in the region of 1.4226
GBP/EUR Exchange Rate News: GBP/EUR Bullish as Greek Negotiations Take a Toll
The Pound Sterling to Euro (GBP/EUR) exchange rate advanced to yet another fresh 7-year high on Tuesday as investors remained seriously concerned over the lack of progress in the Greek bailout negotiations.
The Pound Sterling to Euro (GBP/EUR) exchange rate achieved a high of 1.4156
After taking a firm anti-troika stance, the Greek government was strongly urged to allow representatives from the trio of institutions into the nation in order to assess its fiscal situation.
Although the government appears to be complying with this wish, concerns that Greece won’t compromise with its creditors have left the Euro under pressure.
The Pound, meanwhile, was boosted by comments issued by the Bank of England’s (BoE) head honcho.
GBP/EUR at New 7-Year High, GBP/USD Struggling. UK Rate Hikes Ahead?
The Pound’s fresh surge against the Euro was largely due to comments issued by Bank of England (BoE) Governor Mark Carney.
While the European Central Bank (ECB) is loosening fiscal policy further in an attempt to revive the flagging Eurozone, the British central bank is preparing to tighten measures.
Speculation surrounding BoE interest rate adjustments have been rife and every upbeat UK report supports the case in favour of raising borrowing costs.
The Pound Sterling to Euro (GBP/EUR) exchange rate brushed a low of 1.4071
Although the central bank is unlikely to take any action prior to the UK general election in May, some industry experts are now anticipating adjustments before the end of 2015.
Yesterday BoE chief Mark Carney added fuel to this fire by asserting that reducing UK rates at this juncture would be counterproductive.
While pointing out that domestic inflation is likely to hold around the 0% level for the rest of the year, Carney stated; ‘The thing that would be extremely foolish would be to try to lean against this oil price fall today […] because the impact of that extra stimulus… would happen well after the oil price fall had moved through the economy and we would just add unnecessary volatility.’
Carney did also comment that any eventual interest rate hikes would be slow and gradual.
Although the Pound advanced on the Euro in the wake of the remarks, the Pound Sterling to US Dollar (GBP/USD) continues to trade around the key technical support level of 1.50.
While traders appear reluctant to allow GBP/USD to drift below this level, disappointing data from the UK could see this happen in the days ahead.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast: UK Manufacturing/Industrial Production Report Could Push the Pound Higher
In the hours ahead the Pound Sterling to Euro (GBP/EUR) exchange rate could advance higher still if the UK’s Manufacturing/Industrial Production reports show the improvement expected by economists.
Manufacturing Production is believed to have risen by 0.2% on the month in January, as is Industrial Production.
Respective annual figures of 2.6% and 1.3% have been forecast.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trading in the region of 0.7065. The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5068 The US Dollar to Pound Sterling (USD/GBP) exchange rate is trading in the region of 0.6631. The Pound Sterling to Euro (GBP/EUR) exchange rate is trending in the region of 1.4150