The Pound Sterling (GBP) has fallen by -0.3% against the Euro (GBP/EUR) this afternoon, with the probable cause being a disheartening conclusion to the day’s talks in Brussels.
After PM’s ‘Emergency Brake’ Rejection, Chances of February Finalisation Seems Remote
The biggest blow dealt to Pound Sterling’s (GBP) value today has come from the PM himself, who has firmly rejected a proposed alternative to the benefit-freezing scheme that has been causing such objection among EU leaders. While the PM may have potentially avoided an unfavourable agreement, his actions have nonetheless put a February wrap-up to the terms of the vote into serious question.
The Pound Sterling to Euro (GBP/EUR) exchange rate has failed to enthuse investors today, having dropped progressively over the course of the day. The Euro (EUR) hasn’t exactly moved in contrast, having also had a fairly middling performance overall.
GBP/EUR Exchange Rate News: ‘Emergency Brakes’ Could Bring Negotiations to a Halt in Near Future
Having been buffeted up and down this week by external factors, the Pound Sterling (GBP) has made disappointing movements overall against its peers today, having recorded losses of -0.2% against the Euro (GBP/EUR), -0.4% against the US Dollar (GBP/USD), -0.7% against the New Zealand Dollar (GBP/NZD) and -1.1% against the Russian Ruble (GBP/RUB).
The biggest news for the UK today has been that the European Union (EU) has devised an ‘Emergency Brake’ system that the UK could potentially use to enact David Cameron’s much-desired four year freeze on in-work benefits for migrants to the country. One of the biggest catches to the arrangement, however, is the fact that any EU member trying to ‘put the brakes on’ has to convince fellow member states that it is being sufficiently burdened by having to pay migrant benefits.
While the news does seem to show movement towards the ultimate goal of hammering down the UK Referendum vote’s conditions, the technical limitations of the measure as well as the appeasing nature of the EU’s behaviour have failed to satisfy a number of Eurosceptics.
Euro (EUR) Crumbles against Competitors Today Following Morning’s Eurozone Data
The Euro (EUR) has charted a similar course to the Pound (GBP) today, having either trended narrowly or been in a state of decline overall.
This has been brought about by the morning’s inconsistent Eurozone economic publications, which have shown a rise in both the January annual Consumer Price Index fields but less supportive declines for the German Retail Sales in December.
Euro movement of the day includes 0.2% against the Pound Sterling (EUR/GBP), -0.6% against the New Zealand Dollar (EUR/NZD), -1.1% against the South African Rand (EUR/ZAR) and 1.5% against the Japanese Yen (EUR/JPY).
GBP/EUR Exchange Rate Forecast: Eurozone Manufacturing Stats and UK Lending Data due on Monday
The Euro (EUR) will have the first say in any GBP/EUR pairing movement on Monday, as a spate of Eurozone Manufacturing PMIs for January are due out early in the morning. Following on from this will be the UK’s Net Consumer Credit, Lending Securities on Dwellings and Mortgage Approvals for December.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3103 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7633 today.