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Euro to Pound Sterling (EUR/GBP) Exchange Rate Forecast: CPI Stats Temporarily Support Single Currency

Bank of England

The Euro to Pound Sterling (EUR/GBP) exchange rate has been favourable to the latter currency today, as a recent central bank report giving the Pound a boost.

EUR/GBP Exchange Rate News: Inflation Rate Outcomes Bolster Appeal of Common Currency Today

The Euro (EUR) has put on a mixed performance today, although for the most part the single currency has stayed in a positive position against the competition. Gains have included 0.3% against the Indian Rupee (GBP/INR) and 0.9% against the US Dollar (EUR/USD). Losses have been of -0.2% against Pound Sterling (EUR/GBP), -1% against the South African Rand (EUR/ZAR) and -0.8% against the Japanese Yen (EUR/JPY).

Euro advances today have mainly been facilitated by the morning’s inflation rate results for February, which have risen in the base monthly and core annual fields; the only negative aspect has been a stagnation at -0.2% for the annual final printing.

Pound Sterling (GBP) Advances Today as BoE Omits Mentions of Cuts

The Pound (GBP) has actually managed to appreciate against the competition so far today, thanks to a fairly regular Bank of England (BoE) interest rate decision and minute announcement. This comes after yesterday’s Budget Announcement did little for Sterling’s appeal.

There were clear concerns that the BoE would entertain cutting the interest rate in the future, but these failed to materialise in the contents of the minutes, which instead merely repeated the rhetoric of caution and observation, alongside the new boilerplate of the UK Referendum causing ‘increased uncertainty’.

Pound Sterling gains today include 0.3% against the Euro (GBP/EUR), 1.1% against the US Dollar (GBP/USD) and 1% against the Hong Kong Dollar (GBP/HKD).

EUR/GBP Exchange Rate Forecast: German and Eurozone Ecostats set to Close the Week

With all of the UK economic announcements of the week now come and gone, it remains for tomorrow morning’s Eurozone annual Q4 wage growth figures and German producer prices to generate any further EUR/GBP exchange rate movement before the close of the European trading session. At the time of writing, forecasts were pessimistic in all three fields.

Looking ahead, next week will open with the UK’s Rightmove house prices for March, as well as the Eurozone’s current account outcomes for January.

Current EUR, GBP Exchange Rates

The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 1.2743 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 0.7846 today.

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