The Pound Sterling to Euro (GBP/EUR) exchange rate has declined over yesterday’s hawkish gains, as Germany is due to release key economic data today that may swing the balance back in the Euro’s favour.
Unemployment Figures Disappoint, Later Releases may see Euro to Pound Sterling (EUR/GBP) Exchange Rate Uptrend
The Euro (EUR) received a knock today as the German Unemployment Change figures for July showed a 9,000 person increase, a major increase over the forecast 1,000 person rise that had been predicted. In spite of this, the Euro has stabilised against its rivals, trending narrowly against the Pound Sterling (EUR/GBP), the US Dollar (EUR/USD), the Australian Dollar (EUR/AUD), and the Canadian Dollar (EUR/CAD). The common currency has also risen against the New Zealand Dollar (EUR/NZD) and the South African Rand (EUR/ZAR) by over 0.4%.
The German month-on-month (MoM) and year-on-year (YoY) Consumer Price Index (CPI) figures for July are due later today, and although the monthly forecast is for a drop of -0.1%, the yearly prediction is for a 0.3% increase. If these estimations are correct, coupled with the recent news that Spain has grown by 1%, the Euro may rally against the Pound Sterling (GBP) and the ‘Greenback’ (USD).
The Pound Sterling to Euro (GBP/EUR) exchange rate has softened today, seeing marginal gains against the common currency.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Could be set for Hawkish Rise
Following the news that the UK Net Consumer Credit and Mortgage Approvals for June have grown over previous totals, the Pound Sterling has advanced against several rival currencies, posting gains of over 0.3% against the New Zealand Dollar (GBP/NZD) and the Australian Dollar (GBP/AUD). The Pound is trending in a narrow range against the Euro (GBP/EUR) and the US Dollar (GBP/USD); the ‘Greenback’ is likely to be heavily affected by any interest rate related comments made by the Federal Open Market Committee (FOMC) at their meeting tonight. Meanwhile, the Euro remains fluid during the ongoing Greek bailout talks and could swing either way if any unexpected developments occur.
The Pound Sterling may continue to strengthen against the commodity currencies today in the wake of the positive results announced this morning.
The Pound Sterling (GBP) has seen a significant rise against most major currencies today; by contrast, the Euro (EUR) has declined across the board.
Pound Sterling to Euro (GBP/EUR) Exchange Rate News: Pound Soars after Positive UK GDP Data
After recording a quarterly 0.7% growth in UK GDP, the Pound Sterling (GBP) rose by 0.7% against the Euro (EUR) today, a marked reverse on yesterday’s figures, where the Euro triumphed overall due to positive speculation about the Greek bailout talks. The Pound Sterling also gained strongly against the Russian Ruble (GBP/RUB), advancing by 1%.
The only major losses for the Pound Sterling today have been against three commodity currencies; with the British currency registering a loss of over -0.3% against the Australian Dollar (GBP/AUD), the New Zealand Dollar (GBP/NZD) and the South African Rand (GBP/ZAR). These losses are due to exterior circumstances – the Chinese stock market has received some much needed stabilisation, which may result in an increased demand for Australian and South African mining exports. Also, Reserve Bank of New Zealand (RBNZ) Governor Graeme Wheeler is due to give a crucial speech on the New Zealand economy, which has raised the ‘Kiwi’ against most of its rivals.
Euro to Pound Sterling Exchange Rate (EUR/GBP) Plummets after Drachma Plan Exposed
Despite seeing major uptrends yesterday due to further Greek bailout talks, the Euro (EUR) exchange rate has plummeted today after it was revealed that while in office, former Greek Finance Minister Yanis Varoufakis had created a plan to switch the Greek currency from the Euro to the Drachma (not used since 2001) if Greece was in danger of losing the common currency.
This misstep in negotiations has been felt in the Euro exchange rate, with a loss of -0.5% against the US Dollar and a loss of -0.7% against the Pound Sterling. In addition, the Euro has seen worse losses against the commodity currencies than other currencies, with a fall of -1% against the Australian Dollar (EUR/AUD), the New Zealand Dollar (EUR/NZD) and the South African Rand (EUR/ZAR).
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast: Euro Strength may be Restored Following Data Releases
Although today has undeniably been bad for the Euro (EUR), imminent data releases from Germany (the Eurozone strongest member) may tip the scales back in the common currency’s favour. The July German Unemployment Change data, for example, is forecast to show a drop in the number of unemployed people by 5,000, which could restore confidence in the Euro’s prospects. It is also possible that the knee-jerk reaction to the Greek news may subside in the next few days and stabilise the Euro as, after all, the plan was created by a former Finance Minister, and is by no means reflective of the current administration’s desires.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4141 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7075 today.