The Euro to Pound Sterling (EUR/GBP) exchange rate softened by around -0.15% on Friday.
Although European economic data printed positively on Friday, the shared currency has softened against nearly all of its major peers. The declination is partly as a result of a spate of trader profit locking after Thursday’s surge presented some attractive selling positions. The Pound, meanwhile, has strengthened against many of its rivals after positive Eurozone data supported upwards movement.
The Euro to Pound Sterling exchange rate is currently trending in the region of 1.2671.
Greek Bailout Fears see Euro (EUR) Exchange Rate Stumble
In addition to trader profit locking, the single currency has declined as a result of anxieties regarding the extension of the Greek bailout. Eurozone ministers are considering extending Greece’s bailout by a further six months to the middle of 2015.
‘Although the purpose of the technical extension would be to give more time to the Greek authorities to prepare legislation for adoption in January 2015, the technical extension could be for a longer period to cover for the possibility of delays in the run up to the Greek Presidential elections,’ a document, prepared for Eurozone ministers, stated.
Euro (EUR) Exchange Rate Trending Lower despite Positive Data
As explained above, the single currency has softened as a result of the recent surge opening up attractive selling positions. A positive set of European economic data publications weren’t enough to offset the spate of profit locking.
Year-on-year non-seasonally adjusted German Retail Sales showed an impressive advance from -0.7% to 2.4%, eclipsing expectations of a rise to 0.0%. Monthly factory orders also strengthened considerably in October.
The most significant European publication was the final Eurozone Gross Domestic Product figure, which met with the estimated 0.8% growth in the third quarter. The German Factory Orders report also registered unexpectedly strong growth.
The Euro to Pound Sterling exchange rate dropped to a low today of 0.7874.
Pound Sterling (GBP) Exchange Rate Edges Lower on Inflation Outlook
A distinct lack of influential domestic data has seen the Pound Sterling subject to changes in foreign currency movement. However, a slight depreciation could be as a result of a weaker inflationary outlook from the Bank of England (BoE). Inflation over the next 12 months is forecast to decline from 2.8% to 2.5%.
Euro to Pound Sterling (EUR/GBP) Exchange Rate Forecast to Rebound
Once the spate of trader profit locking has subsided, it is possible that the Euro will recover losses thanks to the day’s positive data publications.
The Euro to Pound Sterling exchange rate climbed to a high today of 0.7924.
Pound Sterling (GBP) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound,
,US Dollar,1.5683,
Pound,,Euro,1.2690,
Pound,,New Zealand Dollar,2.0221,
Pound,,Australian Dollar,1.8746,
US Dollar,,Pound,0.6374,
New Zealand Dollar,,Pound,0.4945,
Euro,,Pound,0.7877,
Australian Dollar,,Pound,0.5333,
[/table]
