The Pound Sterling to Euro (GBP/EUR) exchange rate declined today as the morning’s domestic data failed to inspire a universal degree of confidence in the state of the UK economy.
GBP/EUR Exchange Rate News: Budget Reshuffle Looms as UK Inflation Fails to Shift Today
The Pound (GBP) has been recording losses overall today, with declines of -0.3% against the Euro (GBP/EUR), -0.5% against the US Dollar (GBP/USD) and -0.9% against the Australian Dollar (EUR/AUD) making up the general state of play.
The UK economy has been through the mill lately, having been hit with a successive string of damaging developments on the data and political fronts. In the former case, today’s UK inflation rate stats for February have shown a continued low level of consumer inflation, which has been offset by a 12-month high in the price of houses.
On the political side, last week featured a highly controversial Budget announcement and the subsequent resignation of Secretary of State for Work and Pensions Iain Duncan Smith. Today, it is expected that Chancellor George Osborne will drop the incredibly toxic proposal to cut disability benefits, although economists are unanimous in pointing out that the Chancellor now has very little ‘wriggle’ room to fill the gaping £4bn hole in the Budget plans.
Euro (EUR) Slides Today as PMI Uncertainty Trumps Positive ISO Outcomes
The Euro’s (EUR) appeal has been diminished today. While the single currency was raised in appeal by the outcome of the earlier German IFOs for March covering business climate, among other areas, the additional mixed PMI outcomes and slump in German ZEW survey results has served as a major limiter for the appeal of the Euro.
Single currency losses today have included -0.4% against the Canadian Dollar (EUR/CAD) and -0.6% against the Australian Dollar (EUR/AUD), while gains have included 0.4% against Pound Sterling (EUR/GBP).
GBP/EUR Exchange Rate Forecast: Budget Wangling to Dominate Today’s UK News
With all of the UK’s direct data now out today, it only remains for the situation in the House of Commons to generate any further movement for the Pound (GBP). While statistically improbable, a mostly-accepted budget revision is expected to bolster the appeal of Sterling, while any further cuts to key UK sectors are unlikely to go down at all well.
For the Eurozone, the only other major event of the day will be a speech from German Finance Minister Wolfgang Schauble, due to be delivered in Frankfurt this afternoon.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2744 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7848 today.