The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within a limited range on Tuesday morning as traders prepare for the UK Gross Domestic Product report. The shared currency edged lower versus many of its peers after Eurozone money supply data missed estimates.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3887.
GBP/EUR Conversion Rate Forecast to Trend Narrowly after UK CBI Data Disappoints
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within a narrow range on Monday afternoon.
Last week, the GBP/EUR exchange rate strengthened considerably following a dovish speech from European Central Bank (ECB) President Mario Draghi. The British asset also advanced amid speculation that the recent run of positive domestic ecostats could see the Bank of England (BoE) overtake the Federal Reserve with regards to the timing of a benchmark interest rate. A number of announcements that China will be investing in British infrastructure and nuclear facilities also amplified Sterling gains last week.
On Monday morning the Pound saw subdued trade versus many of its peers after data from the Confederation of British Industry failed to meet with expectations. In addition, September’s BBA Loans for House Purchase was predicted to rise from 46567 to 47400, but the actual result dropped to 44489. However, the data had minimal impact on the Pound today with traders looking ahead to British growth data tomorrow.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3898.
EUR/GBP Exchange Rate Predictions: Mixed German IFO Reports See the Euro Fluctuate
Last week the single currency dived across the board after ECB President Mario Draghi made a dovish speech with regards to monetary policy outlook. Draghi suggested that policymakers will look to expand the program of quantitative easing in December. He also suggested the possibility of further interest rate cuts should it prove necessary. Having appreciated significantly in recent weeks, the Euro downtrend will be welcomed by ECB officials.
Monday’s German economic data produced a mixed-bag of results, but last week’s dovish Draghi speech continues to weigh on demand. Both October’s German IFO Business Climate and Expectations indexes bettered the median market forecasts. However, the German IFO Current Assessment report for October declined beyond expectations. IFO President Hans-Werner Sinn stated; ‘The German economy is proving remarkably resilient in view of this autumn’s multiple challenges.’ Those challenges include the Volkswagen scandal as the true extent of the fallout is yet to be seen.
The Pound Sterling to Euro (GBP/EUR) exchange rate dropped to a low of 1.3856 during Monday’s European session.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Predicted to Advance on US Dollar Strength
Although the British CBI data has the potential to provoke changes for the GBP/EUR exchange rate, the dovish ECB outlook should ultimately continue to weigh on demand for the common currency. In addition, with expectations that the Federal Reserve will look to talk up the prospect of a December rate hike on Wednesday, the resultant US Dollar strength could cause the shared currency to dive versus its major peers.
Tuesday is likely to see significant GBP/EUR volatility with third-quarter British Gross Domestic Product data due for publication. A lack of influential European data should see the Euro continue to hold a weak position versus its major competitors.
The Pound Sterling to Euro (GBP/EUR) exchange rate climbed to a high of 1.3930 during Monday’s European session.