The Pound Sterling (GBP) has trended in a narrow range against the Euro (EUR) today, following the failure of the German inflation rate data for August to break away from expectations.
BoE News Once Again Dominates the GBP/EUR Pairing
The Pound Sterling to Euro (GBP/EUR) exchange rate is expected to make more considerable movement shortly after the release of the Bank of England’s (BoE) estimate for the UK inflation rate over the next 12 months. No predictions have been made over what the estimate will be, but suffice it to say, bullishness will be of far greater benefit to the Pound (GBP) than bearishness in the expectation.
Earlier…
The Pound Sterling (GBP) has risen by 0.5% against the Euro (GBP/EUR) today and has surged against most other rivals thanks to the Bank of England’s (BoE) minutes showing a positive outlook on the UK economy, even after the recent stock market crash.
German CPI Stagnation might Secure Sterling Lead into Weekend
The next most important event for the GBP/EUR exchange rate is the release of the German inflation rates for August tomorrow morning; very marginal rises have been predicted, so this leaves the window open for less than ideal results which could see Sterling (GBP) hold onto its current position of dominance until the close of the European trading session tomorrow.
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate has risen today; elsewhere the Pound (GBP) has recovered a great deal from the earlier blow dealt by a batch of negative UK economic releases.
GBP/EUR Exchange Rate News: Mixed Bag for GBP Following Unsupportive Economic Data Bundle
The Pound Sterling (GBP) has risen by 0.4% against the Euro (GBP/EUR) today; this has been one of several rises for Sterling despite an otherwise faltering day for the Pound. The most detrimental factor to the Pound’s earlier mass-decline was the UK annual Industrial and Manufacturing Production figures for July – the former had been expected to post 1.4% growth, but instead posted 0.8%, while the latter had a repeated 0.5% increase on the cards that was blown out of the water by the printed -0.5%. The BBC’s Economics Editor Robert Peston observed that ‘If the British economy was driven by manufacturing we could well be in seriously dire economic straits’.
The Pound has risen by over 0.4% against the Czech Koruna (GBP/CZK), the Danish Krone (GBP/DKK), the Hungarian Forint (GBP/HUF) and the Japanese Yen (GBP/JPY) today, but has also posted declines of -0.6% against both the New Zealand Dollar (GBP/NZD) and the Mexican Peso (GBP/MXN).
A Day to Forget for the Euro (EUR) as No Data Brings the ‘Greek Situation’ to Prominence
The Euro (EUR) has fared extremely poorly today and falling by -0.3% against the Pound Sterling (EUR/GBP) has been the least of its worries. The common currency has also deteriorated by -0.4% against the US Dollar (EUR/USD), -0.6% against the Australian Dollar (EUR/AUD) and by over -0.7% against the Canadian Dollar (EUR/CAD), the New Zealand Dollar (EUR/NZD) and the South African Rand (EUR/ZAR).
Unlike the Pound, the Euro has suffered today due to a complete lack of relevant major data; instead, the unknowable outcome of the impending Greek elections on September 20th has been the only point for speculators to ponder over. Recent close polls make the winner impossible to call, but Former Prime Minister Alexis Tsipras’ Syriza party has no guarantee of reclaiming their seats, given that support for Tsipras’ politics has dissipated somewhat over disagreements to his decisions.
GBP/EUR Exchange Rate Forecast: BoE could Unravel Sterling’s Gains Tomorrow if Dovishness Wins Out
No large Eurozone releases are due tomorrow but by contrast, the crucial Bank of England (BoE) decision on the UK interest rate is due at noon. Predictions are for a freeze at the current rate of 0.50% which means that all eyes will instead be on the BoE’s policymakers, whose statements will be regarded with particular scrutiny for any hints of a rate hike at the turn of the year.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3776 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7258 today.
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