The Euro (EUR) has declined by -0.2% against the Pound Sterling (EUR/GBP) today, following the news that Draghi has mentioned expanding, rather than reducing, the amount of quantitative easing in place in the Eurozone.
Eurozone Industrial Production results Due Out Imminently, EUR/GBP Rise Possible
The Euro (EUR) is due to be affected next by the Eurozone seasonally adjusted Industrial Production figures for September; at the time of writing, a rise of 1.3% had been forecast for the annual result while a -0.1% decline was in line for the monthly figure.
Earlier…
The Euro (EUR) has fallen by -0.5% against the Pound Sterling (EUR/GBP) today as a further deterioration of the single currency’s value following Draghi’s speech.
German Inflation Data set to further Move EUR/GBP Exchange Rate Tomorrow
The next piece of data set to trigger Euro to Pound Sterling (EUR/GBP) movement tomorrow will be the German CPIs for October; the forecasts were broadly positive at the time of writing, therefore an accurate result is likely to trigger a Euro (EUR) uptrend.
Earlier…
The Euro to Pound Sterling (EUR/GBP) exchange rate has fallen slightly today and in other pairings the common currency has trended narrowly, for the most part. The Pound Sterling (GBP) has made notable gains after slumping earlier in the day.
EUR/GBP Exchange Rate News: Portuguese and Greek Instability prevent Euro Uptrend Today
The Euro (EUR) has had a poor showing so far today, declining by -0.3% against the Pound Sterling (EUR/GBP) and the South African Rand (EUR/ZAR) and seeing a 0.3% advance against the Indian Rupee (EUR/INR) as the best positive result.
Primarily, the Euro has failed to rise to the occasion today due to a lack of domestic support and ongoing turbulence in two member nations. The main Eurozone data today, the German Wholesale Price Indices for October, have both come in negatively.
Further afield, the collapse of the recently-elected Portuguese coalition government has been brought about by opposition from left wing opponents. As with any Eurozone nation, a lack of clear leadership is not conducive towards inspiring confidence. Adding to these woes has been the news that the Greek parliament will be denied the next crucial bailout payment until they properly implement the required economic conditions set out in the terms of the third bailout.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Rises as UK Economic Optimism Seesaws
The Pound Sterling (GBP) has advanced by 0.2% against the Euro (GBP/EUR) today and for the most part, has risen considerably against other rivals. This has equated to advances of 0.2% against the US Dollar (GBP/USD), 0.3% against the Danish Krone (GBP/DKK) and 0.5% against the Russian Ruble (GBP/RUB) and the Swedish Krona (GBP/SEK).
The most notable developments for the Pound today have come from the Bank of England (BoE) Open Forum, which has featured both BoE Governor Mark Carney and Chancellor George Osborne as speakers. Although earlier comments saw the Pound decline due to a lack of investor confidence, later remarks have seen Sterling bounce back strongly. These inspirational points have been Carney’s assertion that the BoE will be well equipped to deal with the UK in the future, whether it remains inside or outside the European Union.
In addition, Osborne trumpeted increased accountability on the part of bankers and their institutions, something that was a far cry from the days of the UK taxpayer bailing out troubled organisations in the not too distant past.
EUR/GBP Exchange Rate Forecast: Portuguese Inflation and ECB Speech set to Generate Further Movement Today
With the last of today’s UK economic publications now out, the Eurozone has a clear field to uptrend against the Pound Sterling (GBP) for the rest of the day.
The first input will be Portugal’s October Inflation Rate data; at the time of writing, declines were forecast for both the monthly and yearly printings.
Following this will be a speech in the afternoon from European Central Bank (ECB) President Mario Draghi, who is expected to comment on the bank’s use of quantitative easing (QE). If Draghi’s previous tone is anything to go by, he may emphasise the possibility that the scheme could be adjusted in a contracting direction. Given the unpopularity of QE among investors, such a statement would surely bolster the common currency significantly against both the Pound Sterling (GBP) and the competition.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7073 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4141 today.
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