The Pound Sterling (GBP) has trended narrowly in a negative range against the Euro (GBP/EUR) today, mainly due to the fact that the UK economic publications have provided little support. Q3 GDP results have matched forecasts and the Gfk Consumer Confidence Survey has declined from 2 points to 1.
UK Credit Results due on Monday along with German Retail Sales Figures
The coming week will start with the UK New Consumer Credit result for October along with the Mortgage Approvals for the same month. For the Eurozone, influence will be first exerted by the German Retail Sales statistics for October, which are due for release in the morning.
The Pound Sterling (GBP) has risen by 0.2% against the Euro (GBP/EUR) today, although the Pound has been damaged by pessimistic analyses of yesterday’s Autumn Statement. The Euro (EUR) has been devalued by fears that further quantitative easing (QE) or worse may be in store for the common currency next week.
UK GDP to Generate Movement Tomorrow along with German Retail Sales Figures
The Pound Sterling (GBP) is likely to appreciate if tomorrow’s Q3 GDP figures exceed forecasts, while the Euro (EUR) may pull out of its current narrow trending if Germany’s October Retail Sales figures exceed current forecasts of declines.
The Pound Sterling to Euro (GBP/EUR) exchange rate has dipped slightly today, while the Pound (GBP) has largely been in a downtrend state against many of its other currency competitors as well.
GBP/EUR Exchange Rate News: Autumn Statement Scrutiny brings Up Uncomfortable Questions for Investors
The Pound Sterling to Euro (GBP/EUR) exchange rate is trending in a narrow negative range today; this has been just one of many losses for Sterling on a quiet data day that comes after yesterday’s Autumn Statement delivery. Other notable declines for the Pound have included -0.3% against the US Dollar (GBP/USD), -0.4% against the Romanian Leu (GBP/RON) and -0.5% against the Israeli New Shekel (GBP/ILS). Gains have largely comprised of 0.3% against the Turkish Lira (GBP/TRY) and 0.4% against the South African Rand (GBP/ZAR).
Yesterday saw something of a pre-Christmas miracle in terms of the Autumn Statement – Chancellor George Osborne reversed his policy on planned tax credit cuts for next year, at least; more impressively, Osborne was able to conjure up a £27bn improvement in the nation’s public finances compared to July’s budget. However, a more scrutinising analysis a day later has seen an exposure of several apparent faults in this grand vision.
For one, the Department for Transport is reeling from a 37% budget cut, but is supposedly meant to see a 50% increase in transport capital spending. Sizable cuts to Energy and Environment departments have also been announced, which are unlikely to aid any further progress towards meeting carbon reduction targets and developing renewables in the near-future.
EUR/GBP Exchange Rate Trends Narrowly Today as ECB Stormclouds Gather
The Euro (EUR) has made middling progress against many of its economic competitors today. The single currency’s rises have included 0.2% against the Pound Sterling (EUR/GBP) and the Polish Zloty (EUR/PLN) along with 0.3% against the Australian Dollar (EUR/AUD) and 0.6% against the South African Rand (EUR/ZAR).
The Euro has been trending narrowly this morning thanks to rumblings of something detrimental on the horizon for the common currency. Scheduled to meet next Thursday, the European Central Bank (ECB) is expected to announce further easing methods. According to Societe General economist Kit Juckes, who was responding to thoughts of a potential negative rate at a split-level: ‘It’s not really obvious that such a policy would drive rates…any lower, but it reinforces the sense that Mr Draghi is committed to further easing next month’.
GBP/EUR Exchange Rate Forecast: German Consumer Confidence to be Last Influence on Pairing Today
With no UK economic publications due until tomorrow, the only remaining movement in the GBP/EUR pairing is likely to be caused by a Eurozone result today.
This is the German Gfk Consumer Confidence Survey result for December, which was forecast to decline marginally from 9.4 to 9.2 at the time of writing.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4210 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7039 today.