The Pound Sterling to Euro (GBP/EUR) exchange rate has risen by a small amount today owing to the Euro (EUR) being hit by European Central Bank (ECB) dovishness for the second day in a row.
GBP/EUR Exchange Rate News: Rising House Prices Trigger Bubble Prediction from RICS
The Pound Sterling (GBP) has advanced by 0.2% against the Euro (GBP/EUR) today, although elsewhere the Pound has trended narrowly against most of its rivals. The primary cause for this uncertainty in the marketplace has been the results from the only UK economic publication of the day, the Royal Institute of Chartered Surveyors (RICS) House Price Balance, which has risen notably from 44% to 49%. Looking further ahead, the Institute has gloomily predicted that property will be increasingly unaffordable over the next 5 years, due to rising property prices and rental costs in addition to the price being driven up by a housing shortage.
Elsewhere, the Pound has risen by 0.3% against the Hungarian Forint (GBP/HUF) and 0.5% against the Norwegian Krone (GBP/NOK), but has fallen by -0.3% against the Israeli New Shekel (GBP/ILS) and -1.3% against the Australian Dollar (GBP/AUD).
Testifying Draghi Devalues EUR/GBP Exchange Rate Today
The Euro (EUR) has slipped by -0.2% against the Pound Sterling (EUR/GBP) today, just one of a number of flops for the single currency. Other losses have included -0.4% against the US Dollar (EUR/USD), -0.5% against the New Zealand Dollar (EUR/NZD) and -1.5% against the Australian Dollar (EUR/AUD).
In addition to being harmed by European Central Bank (ECB) President Mario Draghi’s proposals for a tighter banking unity between Eurozone nations yesterday, Draghi’s testimony to the European Parliament today has also caused the Euro to depreciate significantly. In addition to defending his record over the post-bailout conditions of nations like Cyprus and Greece, Draghi has also changed his tone on quantitative easing (QE). Instead of hinting at a possible reduction in the scheme in December, Draghi has instead implied that more QE may be due for the Eurozone.
GBP/EUR Exchange Rate Forecast: Eurozone GDP Figures set to Trigger Movement Tomorrow
Although the UK Construction Output results for September are due tomorrow, the glut of Eurozone GDP results for the third quarter will be the weightier of the two releases. At the time of writing, the overall Eurozone result was expected to rise from 1.5% to 1.7%.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4159 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7062 today.