The Pound Sterling (GBP) has remained at 0.2% against the Euro (GBP/EUR) today, mainly on account of the French state of emergency being extended for 3 months. As observed by European Central Bank (ECB) Chief Economist Peter Praet, ‘We have a fragile cyclical recovery, fragile with downside risk’.
Impending ECB Speech may Cause Further EUR Downtrend against GBP
The next piece of relevant data for the pairing will be a speech from ECB Governing Council member Ewald Nowotny, who is scheduled to speak on the Greek economic rescue. Although it has been side-lined by recent events in France, the Greek situation remains a turbulent one, as at the time of writing the nation was still without vital bailout funds due to a failure to properly implement required laws.
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate has risen today, mainly on account of the Euro (EUR) crashing in value after the horrific events of the weekend in Paris.
GBP/EUR Exchange Rate News: Rising Yearly UK House Prices Trigger Uncertainties over Housing Market
The Pound Sterling (GBP) has made inconclusive movement today, rising and falling against competitor currencies in roughly equal measure. On the positive side, rises have included 0.2% against the Euro (GBP/EUR) and the New Zealand Dollar (EUR/NZD) and 0.3% against the Swedish Krona (GBP/SEK), while losses have been made up of -0.3% against the US Dollar (GBP/USD), -0.4% against the Indian Rupee (GBP/INR) and -0.9% against the volatile Russian Ruble (GBP/RUB). This movement has come as something of an improvement on last week’s results, which saw the Pound seesaw due to speeches from economists.
One contributor to the Pound’s uncertain value today has been the result of the Rightmove House Price report for November. The monthly figure has fallen from 0.6% to -1.3%, while the annual printing has risen from 5.6% to 6.2%. Although positive for home sellers, this annual result has also served to justify the Royal Institute of Chartered Surveyors (RICS) prediction last week that UK houses are going to become increasingly unaffordable in the next 5 years.
EUR/GBP Exchange Rate Falls as Paris Attack Aftermath Lowers Euro’s Appeal against INR, USD Today
The Euro (EUR) has declined against all of its rivals today, seeing losses of over -0.4% against the Swiss Franc (EUR/CHF), the Canadian Dollar (EUR/CAD), the Indian Rupee (EUR/INR), the US Dollar (EUR/USD) and the South African Rand (EUR/ZAR). Elsewhere, the Euro has declined marginally against the Pound Sterling (EUR/GBP) and risen fractionally against the Australian Dollar (EUR/AUD).
The attacks in France on Friday night into Saturday have damaged the value of the Euro significantly, with the single currency seeing a loss in appeal due to concerns over the immediate effects on the retail and tourism industries in the capital.
GBP/EUR Exchange Rate Forecast: UK Inflation Rate and Eurozone Confidence Scores Due Out Tomorrow
The next major economic releases that are likely to affect the GBP/EUR exchange rate are scheduled for release tomorrow, although ahead of these will be Germany’s Bundesbank Monthly Report, which is expected imminently.
The UK releases will come first tomorrow, with the nation’s Consumer Price Indexes for October being released early. As of writing, forecasts were for a -0.1% decline annually for the base field and a repeat figure of 1% for the Core result. With the base monthly outcome, a rise from -0.1% to 0.1% had been predicted.
Shortly after these results, the November Eurozone and German ZEW Surveys of Economic Sentiment and the Current Situation are scheduled for release; no predictions have been made for the Eurozone Sentiment result, but a stagnation at 55.2 points is forecast for the German Situational score. With German Sentiment, forecasts have been for a notable rise from 1.9 points to 6.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4178 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7054 today.
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