A failure to excite speculators in the UK GDP results today has seen the Pound Sterling to Euro (GBP/EUR) exchange rate hold an earlier decline as stock markets return to normal.
GBP/EUR Exchange Rate News: Sterling has Disappointing Day in Second Overall Reversal of the Week
The Pound Sterling (GBP) has slipped down against many of its major competitors today as stock markets returned to their most stable level of the week after ‘Black Monday’. The Pound fell on that day but steadily improved from Tuesday onwards. Today, however, Sterling has flopped across the board after the UK Q2 GDP results merely met with growth expectations rather exceeding them. The UK was supported by a number of other results that were positive for the UK economy, but these failed to raise demand for the Pound in the wake of a return to ‘business as usual’.
Among the Pound’s worst losses have been a decline of over -0.4% against the Euro (GBP/EUR), the Swiss Franc (GBP/CHF), the Czech Koruna (GBP/CZK) and the Romanian Leu (GBP/LEU). Among the few real gains for the Pound today were a rise of 0.3% against the Thai Baht (GBP/THB) and a 0.5% rise against the Russian Ruble (GBP/RUB).
Major gains recorded in EUR/GBP and other Pairings as Euro-Optimism Soars
In an inverted bell curve pattern, the Euro (EUR) rose at the start of the week only to dive from Tuesday to Thursday. Completing the second high point, the Euro has shot up again today by 0.3% against the Pound Sterling (EUR/GBP) and has come out strongly against all other rivals, with the worst result of the day being a narrow trending against the Swiss Franc (EUR/CHF). Particular highs for the common currency include rises of over 0.5% against the Australian Dollar (EUR/AUD), the Canadian Dollar (EUR/CAD), the Indian Rupee (EUR/INR) and the New Zealand Dollar (EUR/NZD). The greatest gain today has been a 0.7% rise against the South African Rand (EUR/ZAR).
The Euro’s gains today come as Eurozone Economic and Services Confidence scores for August have both risen, a sign of hope for the future of the Eurozone economy.
GBP/EUR Exchange Rate Forecast: German CPI Upsets may Deflate Eurozone Optimism
The Pound Sterling (GBP) still has the potential to gain against the Euro (GBP/EUR) later on today if the German CPIs for August come in with their expected uninspiring figures. Fractional changes are predicted in the annual inflation rate, but expectations for the monthly results foresee drops of -0.1%, which will hardly be conducive towards Euro-optimism.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3658 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7324 today.