The Pound Sterling to Euro (GBP/EUR) exchange rate has been performing extremely poorly today, as have almost all of the Pound’s other major peer pairings.
UK Economic News: Lack of Steel Resolution Amplifies Pound Sterling (GBP) Uncertainty Today
The Pound (GBP) has been an exceptionally poor prospect for investors today, having fallen by -0.8% against the Euro (GBP/EUR), the Czech Koruna (GBP/CZK) and the Danish Krone (GBP/DKK) and by -0.9% against the Polish Zloty (GBP/PLN).
In a highly damaging development for the UK’s currently crisis-stricken steel industry, the new has emerged that Indian corporation Tata, which owns a number of UK steel operations, may be planning to buy steel assets in Germany.
This comes at a particularly sensitive time for Tata and the UK, as the corporation is currently seeking a buyer for its failing steel plant in Port Talbot, and may be considering a messy economic exit from the UK if no resolution can be reached.
In terms of domestic data, the UK Nationwide house prices for March rose both on the month and on the year, while the manufacturing PMI for the same month failed to climb as high as had been forecast.
Euro (EUR) Fares Well Today as Eurozone PMIs Pull Through for Common Currency
The Euro (EUR) has recorded gains against most of its rivals today, having been bolstered by earlier manufacturing PMI outcomes for March. The Italian, German and overall Eurozone printings rose on previous results, with only the French variant remaining stagnant. An extra bonus was Greece’s manufacturing PMI, which showed an unexpected rise from 48.4 to 49 points.
The Euro has risen by 0.8% against the South African Rand (EUR/ZAR) and 0.9% against the Pound Sterling (EUR/GBP) today.
Future Forecast: UK Construction Stats and Eurozone Confidence to Open Next Week
The remainder of the week is unlikely to bring any significant change in the GBP/EUR exchange rate, therefore it will be up to Monday to generate fresh changes for the pairing.
This will open with the Eurozone Sentix score of investor confidence for April, as well as the Eurozone PPI outcome for February.
The UK’s sole contribution on Monday will be the Markit/CIPS construction PMI for March, which previously printed at 54.2.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2519 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7989 today.
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