Whilst traders await both British and European economic data, the Euro to Pound Sterling (EUR/GBP) exchange rate declined by around -0.16%. This can be attributed to speculation that the Eurozone Producer Price Index will show inflation to have fallen. British construction data is also forecast to tick lower.
The Euro to Pound Sterling exchange rate is currently trending in the region of 0.7912.
Yesterday…
After European data printed below expectations on Monday, the Euro to Pound Sterling (EUR/GBP) exchange rate softened by around -0.28%. The Pound, meanwhile, has advanced against the majority of its most traded currency competitors as a result of better-than-forecast domestic data.
The Euro to Pound Sterling exchange rate is currently trending in the region of 0.7942.
Positive Data sees Sterling (GBP) Surge
After British economic data printed positively, the Pound strengthened against nearly all of its major peers. Mortgage Approvals, Net Consumer Credit and the Manufacturing PMI all improved upon the market forecasts. Of particular benefit to Sterling was the improvement in manufacturing, which strengthened from 53.3 to 53.5 despite expectations of a drop to 53.0.
David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply stated; ‘Manufacturing appears to be a safe pair of hands and moving in a positive trajectory in the UK economy as we await detail of the Chancellor’s statement this week.’
The Euro to Pound Sterling exchange rate has fallen to a low today of 0.7937.
Disappointing European Data sees Euro (EUR) Slump
After European data printed below expectations on Monday, the common currency slumped against nearly all of its major peers. Perhaps the most detrimental of these publications was German Manufacturing, which fell below the 50 level which separates growth from contraction.
Oliver Kolodseike, economist at Markit, stated; ‘The headline PMI fell to its lowest level in 17 months, with the average reading for the fourth quarter so far the lowest since Q2 2013. With companies struggling to obtain new contracts from home and abroad in the face of economic uncertainties, hopes are now fading that any meaningful growth in manufacturing will resume towards the end of the year.’
Euro to Pound Sterling (EUR/GBP) Exchange Rate Forecast to Continue Trending Lower
With sentiment towards the Euro shaky amid fears of Eurozone recession, the Euro to Pound Sterling exchange rate is likely to continue trending lower.
The Euro to Pound sterling exchange rate has reached a high today of 0.7977.
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,1.5715,
Pound,,Euro,1.2606,
Pound,,New Zealand Dollar,2.0013,
Pound,,Australian Dollar,1.8525,
US Dollar,,Pound,0.6362,
New Zealand Dollar,,Pound,0.4996,
Euro,,Pound,0.7933,
Australian Dollar,,Pound,0.5397,
[/table]
