The Pound Sterling (GBP) has trended in a narrow range against the Euro (GBP/EUR) today in the wake of both currencies not receiving universally beneficial data.
Low-Impact Eurozone Current Accounts to Provide Last GBP/EUR Movement before Greek Vote
The Euro (EUR) has been helped today by positive Construction Output results for July, but has been conversely hindered by the European Central Bank’s (ECB) Economic Bulletin, which has not been 100% positive with regards to future Eurozone growth. The same has happened for the Pound (GBP); the UK monthly Retails Sales Including Auto Fuel figure for August rose from 0% to 0.2%, but the three other variants of the result all declined, two of them past expectations.
The only major Eurozone data left before the close of the European trading session tomorrow is the Eurozone Current Account for July; no predictions have been made but the information has been classed as low-impact. After this, on Sunday, the Greek public will take to the polling booths once again to decide their prime minister for the second time this year.
The Pound Sterling (GBP) has risen by 0.8% against the Euro (GBP/EUR) today after the UK’s latest set of economic releases showed a broad improvement of the UK economy, triggering a Sterling rally.
Week to End Early as Last Major UK/Eurozone Figures come Tomorrow Morning
The final word on the Pound Sterling to Euro (GBP/EUR) exchange rate will come tomorrow morning, after the European Central Bank (ECB) publishes its Economic Bulletin; shortly afterwards, the UK Retail Sales results for August are out, although unlike the unknowable bulletin, forecasts have generally been for a reduction in UK sales over the past month.
The Pound Sterling to Euro (GBP/EUR) exchange rate has trended in a narrow range today, mostly on account of a mixed reception to the UK inflation rate news.
GBP/EUR Exchange Rate News: UK Decline in Inflation Rates is met with Uncertainty by Speculators
The Pound Sterling (GBP) has trended narrowly against the Euro (GBP/EUR) today and has elsewhere seen few gains against its rivals. The biggest losses for Sterling have been made up of a -0.3% fall against the Hungarian Forint (GBP/HUF) and the Israeli New Shekel (GBP/ILS) and -0.7% against the Japanese Yen (GBP/JPY) and the Russian Ruble (GBP/RUB). Sterling’s greatest gain has been 0.6% against the Australian Dollar (GBP/AUD).
The biggest Pound-centric news today came in the form of the UK inflation rates for August; the annual figure saw a drop from 0.1% to 0% while the core yearly result came in with a decline from 1.2% to 1%. The Bank of England’s (BoE) recent predictions matched the reality of the results and while the BoE expects the UK inflation rate to remain close to 0% until the end of the year, this naturally doesn’t correspond with the BoE’s target of 2%. The news induced the Institute of Directors (IoD) to call for UK interest rates to rise, though by contrast, the Trade Union Centre (TUC) strongly voiced its opinion against such a measure. This latter sentiment was echoed by the British Chambers of Commerce.
Euro (EUR) Loses out thanks to ZEW Surveys and Marginal Employment Gains
The common currency (EUR) has had a mixed day in terms of results; the German ZEW Survey for the Current Situation rose from 65.7 points to 67.5, but the German and Eurozone ZEW Surveys of Economic Sentiment for September both dropped considerably; the German result even plunged below the forecast decline from 25 to 18.3 by hitting 12.1. Annual Eurozone employment stayed at 0.8%, while the Q2 figure saw a rise from 0.1% to 0.3%.
The Euro has trended narrowly against the Pound Sterling (EUR/GBP) today and has seen rises of 0.2% against the New Zealand Dollar (EUR/NZD) and by 0.6% against the Australian Dollar (EUR/AUD). With losses, the main features for the single currency have been a decline of -0.2% against the South African Rand (EUR/ZAR) and -0.6% against the Japanese Yen (EUR/JPY).
GBP EUR Exchange Rate Forecast: Week Ends Early with Most Data Set for Release Tomorrow
The next round of influential economic reports for both currencies comes tomorrow morning with the release of the UK Claims, Earnings and Employment data for August and July, along with the Eurozone CPIs for August. Forecasts have been generally optimistic for the UK results, while the only major change expected for the Eurozone monthly results is a rise from -0.6% to 0%.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3632 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7337 today.