The Pound Sterling to Euro (GBP/EUR) exchange rate has dropped today following the release of the largest set of Eurozone data for the week.
GBP/EUR Exchange Rate News: Lingering Debt Worries Hold Sterling back against the Euro, USD and CAD
The Pound Sterling to Euro (GBP/EUR) exchange rate has fallen by -0.2% today on a day of no expected news for the UK economy. The Pound has no economic releases today to depend on, so speculators must instead refer back to yesterday’s expansion of UK debt following the disappointing Public Sector Net Borrowing figures.
The only positive news for the Pound so far today has been the development during Chancellor George Osborne’s Chinese visit that has established Osborne’s aim of setting China as the UK’s second largest trading partner by 2025. Although certainly ambitious, the news came while Osborne was visiting China’s Xinjiang region, one infamous for its religious persecution of Uighur Muslims. The Chancellor offered a pragmatic stance on the issue, saying ‘Of course we’re two completely different political systems and we raise human rights issues, but I don’t think that is inconsistent with also wanting to do more business with one-fifth of the world’s population.’
The Pound has had a middling overall performance today; significant deviations include falls of over -0.4% against the Hungarian Forint (GBP/HUF) and the Egyptian Pound (GBP/EGP) and rises of more than 0.3% against the New Zealand Dollar (GBP/NZD) and the Australian Dollar (GBP/AUD).
Uncertain Eurozone PMI Results are Reflected in Marginal Gains for Euro (EUR) Today
The Euro (EUR) has had a similar performance to the Pound Sterling (GBP) today, posting a few medium advances but seeing little overall activity. The Euro has risen by 0.2% against the Pound Sterling (EUR/GBP) today in addition to seeing gains of 0.3% against the New Zealand Dollar (EUR/NZD) and 0.5% against the Australian Dollar (EUR/AUD).
The biggest Eurozone data set of the day (and the week) has come out today in the form of a collection of PMIs for the Eurozone as a whole and its constituent nations. While the French results saw growth above expectations, the German and overall results declined as expected. It is thought that the unexpected French growth has been the only thing preventing a Euro downtrend, as the only other Europe-relevant news is the ongoing turmoil at Volkswagen over their defrauding of emissions authorities with potentially millions of vehicles.
GBP/EUR Exchange Rate Forecast: Potential for Last-Ditch Sterling Rise Tomorrow if German Confidence Falls as Forecast
Tomorrow brings a single piece of UK data, which is also the last of the week for the Pound Sterling (GBP). The BBA Loans for House Purchases in August is due tomorrow morning and a rise from 46.33 to 47000 is predicted. This is not much in itself, but the fact that tomorrow’s Eurozone economic publications, the German GFK Consumer Confidence Survey and German IFO Assessments and Expectations for September, are forecast for universal declines bodes well for Sterling’s prospects in the GBP/EUR pairing.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3805 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7245 today.