The Euro to Pound Sterling (EUR/GBP) exchange rate edged higher by around 0.14% on Tuesday morning.
As traders await British inflation data, which is expected to cool thanks to low oil prices, the Pound softened versus many of its major peers. The Euro, meanwhile, edged higher versus many of its most traded rivals thanks to recovering some of the declination following Greece’s rejection of the Eurogroup proposal.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trending in the region of 0.7392.
Yesterday…
The Euro to Pound Sterling (EUR/GBP) exchange rate strengthened by around 0.30% on Monday morning.
As we approach the Eurogroup meeting, which will strive to resolve Greece’s debt crisis in the most utilitarian fashion, the single currency strengthened versus many of its major peers. This is an indication that traders are optimistic that the Eurozone officials will find a desirable resolution. Additional gains are the result of better-than-expected trade balance data for the Eurozone.
Meanwhile, the Pound fluctuated versus its most traded currency rivals thanks to mixed-results from house price data. Any significant declination is likely to be avoided, however, with sentiment towards the Bank of England (BoE) vastly improved amid mounting rate hike rhetoric.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trending in the region of 0.7412.
Pound Sterling (GBP) Exchange Rate Fluctuates on House Prices
With BoE Governor Mark Carney recently hinting that low inflation will not prevent rate revisions, the Pound is generally holding in a positive position versus many of its major peers. Monday’s house price data produced mixed results, causing the Pound to fluctuate within a limited range. Year-on-year House Prices cooled from 8.2% to 6.6% in February. Month-on-month house prices, however, gained in February from 1.4% to 2.1%.
Rightmove director Miles Shipside said: ‘We’re now over a month into 2015, and despite predictions that the upcoming May election could slow home-mover interest, Rightmove has recorded its busiest ever month for traffic and leads to agents. This demand has contributed to new seller asking prices being up across all regions this month, by a national average of over £5,000 (+£5,729/+2.1%).’
The Euro to Pound Sterling (EUR/GBP) exchange rate has fallen to a low of 0.7388 today.
Euro (EUR) Exchange Rate Strengthens ahead of Eurogroup
The Eurogroup meeting on Greece, due to begin around 16:30 GMT, will be of significance to the shared currency. With Greece’s position in the Eurozone potentially hanging in the balance, negotiators bear a heavy weight of responsibility.
‘The stakes are high, but I doubt tonight is much more than theatrics,’ Daniel Gros, director of the Centre for European Policy Studies in Brussels, said in an e-mail. ‘The real showdown will come much later.’
Trade balance data printed positively, allowing the common currency to advance versus many of its major rivals. The Eurozone’s trade surplus was forecast to drop from 21.6 billion to 19.0 billion, but the actual result advanced to 23.3 billion. In addition, non-seasonally adjusted Trade Balance eclipsed expectations of a decline from 21.2 billion to 20.0 billion, with the actual result appreciating to 24.3 billion.
Euro to Pound Sterling (EUR/GBP) Exchange Rate Forecast to Fluctuate
Given the lack of data to provoke volatility, the Euro to Pound Sterling (EUR/GBP) exchange rate is unlikely to be subject to significant movement. However, there is the potential for fluctuations depending on the outcome of the Eurogroup meeting; although most agree nothing will be decided at this early stage.
Tuesday will see heightened EUR/GBP movement thanks to significant data publications pertaining to both the UK and the Eurozone. The German ZEW Economic Sentiment Survey will be of interest, as will British inflation data.
The Euro to Pound Sterling (EUR/GBP) exchange rate reached a high today of 0.7423.
