The Pound Sterling to Euro (GBP/EUR) exchange rate has declined today, in contrast to yesterday’s gains for the Pound (GBP).
Euro (EUR) Gains over Rivals after Eurozone CPI Edges Higher, Negative Canadian GDP Data May Break ‘Loonie’
After seeing 0.2% increase in the Eurozone Consumer Price Index for July, the Euro to Pound Sterling (EUR/GBP) exchange rate has risen by 0.5% today; this -0.5% loss in the GBP/EUR is a reverse of the gains made yesterday by the Pound against the common currency. The results are optimistic for the future performance of the Euro (EUR), although any (further) setbacks in the Greek bailout talks may undo today’s gains, as negotiations drag on in Athens.
The Canadian Dollar (CAD) has a vital release of data later today – the Canadian monthly and yearly GDP figure for May. The monthly forecast predicts stagnation in the country’s economy, and the yearly estimate is that annual growth will fall from 1.2% to 0.8%. Any fluctuations in these figures (either way) may dramatically affect the performance of the ‘Loonie’ and see a significant rally or softening, dependent on which way the statistics swing. The Canadian Dollar has declined against the Pound Sterling (CAD/GBP) and the Euro (CAD/EUR) today, by -0.1% and -0.6% respectively.
The Pound Sterling (GBP) has enjoyed a healthy gain over the Euro (EUR) today, after the German Unemployment Rate Change for July increased significantly beyond the forecast rise.
Current Uptrend for Pound Sterling (GBP) may not last if Additional German Data is Positive
Although last month saw a drop of -5,000 in the number of unemployed people in Germany, today has seen the rate rise by approximately 9,000 people, a vast increase over the predicted 1,000 person rise for the month.
This disappointing result has seen a decline in the Euro to Pound Sterling (EUR/GBP) exchange rate of -0.2%, and a fall of -0.3% against the US Dollar (EUR/USD). However, the release of further economic data from Germany later today may see the Euro recoup its losses, and this optimism is reflected in its stable performance against the Australian Dollar (EUR/AUD) and the Canadian Dollar (EUR/CAD), where it has trended in a narrow range.
The Pound Sterling to Euro (GBP/EUR) exchange rate has seen a slight rise of 0.2% today. Elsewhere, the Canadian Dollar (CAD) has only had major gains against the other commodity currencies (AUD, NZD).
Pound Sterling to Euro Exchange Rate News: Positive UK Results Allow GBP/EUR to Edge Higher
The UK Net Consumer Credit and Mortgage Approvals figures released this morning show positive growth in both areas, of 1.2bn and 66.6K respectively. This has resulted in a rally for the Pound Sterling against the commodity currencies, with the asset seeing a 0.6% rise against the Australian Dollar (GBP/AUD) and the New Zealand Dollar (GBP/NZD). The Pound has also gained against the Turkish Lira (GBP/TRY) and the Thai Baht (GBP/THB) by more than 0.5%.
The Euro has also gained on the Australasian pair, seeing a 0.5% rise against the Australian Dollar (EUR/AUD) and the New Zealand Dollar (EUR/NZD). Although the Canadian Dollar (CAD) has also risen against the ‘Aussie’ (CAD/AUD) and the ‘Kiwi’ (CAD/NZD), the increases were more contrasting, with a 0.3% increase against the former and a 0.6% increase against the latter.
Canadian Dollar to Pound Sterling (CAD/GBP) Exchange Rate Falls ahead of FOMC Decision
While it has gained against the Australian Dollar (AUD) and the New Zealand Dollar (NZD), the Canadian Dollar has performed poorly elsewhere, dropping by -0.3% against the Pound Sterling (CAD/GBP) and trending in a narrow range against the Euro (CAD/EUR) and the US Dollar (CAD/USD).
This tepid activity by the ‘Loonie’ seems set to continue, unless the Federal Open Market Committee (FOMC) meeting tonight results in news around raising the US interest rate, in which case hawkish remarks would almost certainly see the Canadian Dollar dive against most major currencies. This is due to the status of the US Dollar, and the state of the Canadian oil industry. Most global commodities are priced using the ‘Greenback’, so an increased interest rate in the US negatively affects the prices of commodities across the world. The price of crude oil dipped below $50 a barrel last week, and the key Canadian industry remains under pressure from investors and activists alike as high-profile spills and reduced demand in the summer season continue to hobble the Canadian economic recovery.
Pound Sterling to Euro Exchange Rate Forecast: EUR/GBP may Rise following German Employment and Inflation Data Releases
The Pound Sterling (GBP) currently stands at an advantage over the Euro (EUR), but tomorrow sees the release of the German Unemployment Change for July. If the results are accurate to their optimistic forecasts, the common currency may rally against the Pound and its other competitors. However, the continuing uptrend in the Pound’s performance may upset any potential gains by the Euro, as today’s UK figures have already pushed the Pound Sterling up against several major rivals.
The Canadian Dollar (CAD) will be most immediately affected by the FOMC decision, but Canadian GDP data for May is due on Friday, and if this exceeds the stagnant 0.0% predictions that have been made, the ‘Loonie’ may rally unexpectedly in the days that follow.
Current GBP, EUR, CAD Exchange Rates
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending in the region of 2.0209, the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4127, the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7080, the Euro to Canadian Dollar (EUR/CAD) exchange rate was trending in the region of 1.4306, Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate was trending in the region of 0.4955, and the Canadian Dollar to Euro (CAD/EUR) exchange rate was trending in the region of 0.6992 today.