The Pound Sterling to Euro (GBP/EUR) exchange rate edged higher by around 0.15% on Thursday morning. This is likely to be as a result of the hangover from Wednesday’s positive British labour data. The Euro, however, is subject to changes in foreign currency movement whilst traders await German data. Similarly, British retail sales data is expected to provoke volatility for the Pound.
The Pound Sterling to Euro exchange rate is currently trending in the region of 1.2642.
Yesterday…
The Pound Sterling to Euro exchange rate appreciated by around 0.21% on Wednesday. Despite the fact that British economic data produced relatively mixed results, Sterling strengthened against many of its major peers as a result of unchanged low unemployment levels. Compounding the Sterling appreciation was the Bank of England minutes from their most recent policy meeting, in which it was revealed that the two dissenters held firm in their beliefs that the benchmark rate should be hiked. The common currency, meanwhile, was unaffected by domestic data and is subject to movement in foreign currencies.
The Pound Sterling to Euro exchange rate is currently trending in the region of 1.2607.
Pound (GBP) Exchange Rate Gains on BoE Minutes
After the Bank of England published the minutes from their most recent policy meeting, the Pound appreciated versus many of its most traded currency rivals. The minutes revealed that the two hawkish policymakers stood firm by their views despite speculation that they would change their minds amid inflationary concerns.
British economic data produced mixed results on Wednesday. Employment Change and Jobless Claims Change showed an unwanted increase. Unemployment Rate, however, maintained the lowest score since 2008 at 6.0%. Claimant Count Rate ticked lower, and Average Weekly Earnings advanced from 1.0% to 1.4%.
The Pound Sterling to Euro exchange rate dropped to a low today of 1.2566.
Euro (EUR) Exchange Rate Holding Steady on Unchanged Data
After European economic data printed in line with median market predictions, the single currency is holding relatively steady against its major peers. Eurozone Consumer price Index equalled the previous figure of 0.3%, and the Core CPI maintained the previous score of 0.7%. A slight Euro downtrend could be attributed to a declination in Eurozone Labour Costs.
Pound Sterling to Euro (GBP/EUR) Forecast to Strengthen
With sentiment towards the common currency skating on thin ice, and with the duo of BoE dissenters holding firm in their views on rate hikes, the GBP/EUR exchange rate is likely to continue trending higher.
The Pound Sterling to Euro exchange rate has reached a high today of 1.2621.
