The Euro to Pound Sterling (EUR/GBP) exchange rate strengthened by around 0.17% on Thursday morning.
After German unemployment data printed positively the Euro strengthened versus many of its major peers. However, the gains have been laboured whilst traders await German inflation data which is expected to drop amid tanking oil prices.
The Pound Sterling, meanwhile, is generally softer versus most of its major rivals after house prices declined in January.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trending in the region of 0.7468.
Yesterday…
The Euro to Pound Sterling (EUR/GBP) exchange rate edged lower by around -0.17% on Wednesday morning.
With trader tensions easing as it looks increasingly likely that there won’t be a Greek exit from the Eurozone, focus is now firmly set on the most recent stimulus employed by the European Central Bank (ECB). The initial surge enjoyed after Grexit fears were reduced was pared on Wednesday, with the massive injection of liquidity in the Eurozone weighing on sentiment towards the shared currency.
The Pound Sterling, meanwhile, is generally trending higher versus many of its most traded rivals after the Tuesday’s declines were seen as unjustified. Although UK growth missed estimates, the actual annual result was still an improvement on previous figures.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trending in the region of 0.7468.
Euro (EUR) Exchange Rate Softens as QE Weighs
As described above, the ECB’s stimulus measures have seen renewed downward pressure on the Euro after Grexit fears eased. On the subject of QE, Manuel Ramos-Francia, research director of the Bank of Mexico, stated; ‘What it really is giving [us] is some breathing space, some room for other decisions to be made,’ he said. ‘And I think that the big question at the end of the day is: Will this breathing room have been useful, will [it] be used in a productive way? Or, on the other hand, it was too much anaesthesia and it permitted those policy decision makers that should be taking and making the tough decisions … it permitted them not to do so.’
Additional Euro losses can be connected to mixed results from German data. Whilst the Consumer Prices Index advanced beyond expectations, the German Import Price Index softened on both a yearly and monthly basis.
The Euro to Pound Sterling (EUR/GBP) exchange rate dropped to a low today of 0.7458.
Pound Sterling (GBP) Exchange Rate Edges Higher on Unwarranted Declination
After British growth data failed to meet with expectations on Tuesday, the Pound slumped versus nearly all of its most traded currency competitors. However, this failed to take into account the fact that UK growth across 2014 as a whole was still an improvement upon previous figures. The unjustified losses have been recovered on Wednesday.
Capital Economics senior UK economist Samuel Tombs said; ‘We think that GDP growth could pick up to 3 per cent this year. In short, the best days of the UK’s recovery may still lie ahead.’
Euro to Pound Sterling (EUR/GBP) Exchange Rate Forecast to Fluctuate
Given the lack of domestic data to provoke changes, and with mounting uncertainty regarding the effectiveness of QE in the Eurozone, the Euro to Pound Sterling (EUR/GBP) exchange rate has the potential to fluctuate on Tuesday.
The Euro to Pound Sterling (EUR/GBP) exchange rate advanced to a high today of 0.7497.
