The Euro to Pound Sterling (EUR/GBP) exchange rate declined by around -0.30% on Friday morning.
As traders await British economic data, due for publication later on Friday morning, the Pound edged higher versus many of its major peers. This is likely to be the result of speculation that the Bank of England (BoE) will look to raise the benchmark rate soon after the conclusion of the general election, especially given that British data outperformed that of its major rivals in recent weeks.
The Euro, meanwhile, softened versus many of its most traded currency rivals in response to creditors giving Greece a deadline of just six working days to meet with their reform demands. The European Central Bank (ECB) has granted Greece an emergency loan but many feel this will have little impact to alleviate the country’s significant financial woes.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trending in the region of 0.7237.
Yesterday…
The Euro to Pound Sterling (EUR/GBP) exchange rate ticked higher by around 0.11% on Thursday morning.
Although we are yet to learn whether Greece will meet with promises to repay the International Monetary Fund (IMF) on time, the shared currency strengthened versus some of its most traded currency rivals. This can be attributed to better-than-expected German trade data.
The Pound, meanwhile, softened versus most of its major peers after domestic data produced mixed results erring towards the negative. Of particular disappointment was the nation’s widening trade deficit.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trending in the region of 0.7256.
Euro (EUR) Exchange Rate Edges Higher on German Data
The shared currency edged higher on Thursday even amid concern that Greece will default on its payment to the IMF. Although Greek Finance Minister Yanis Varoufakis stated that the nation will meet with its obligation, opinion is divided as to whether this will come to fruition.
Meanwhile the shared currency advanced a little versus many of its most trade currency competitors in response to better-than-anticipated domestic data. February’s German Trade Surplus was forecast to improve from 15.9 billion to 19.0 billion, but the actual result reached 19.2 billion.
The Euro to Pound Sterling (EUR/GBP) exchange rate has fallen to a low of 0.7232 today.
Pound Sterling (GBP) Exchange Rate Dips ahead of BoE Rate decision
Given that the Bank of England highlighted an improved trade balance as one of the prerequisites for raising the lending rate, Thursday’s disappointing trade deficit will unsettle rate hawks. The Trade Deficit was forecast to improve from £-0.616 billion to £-0.18 billion, but the actual result saw the deficit widen to £-2.859 billion.
The forthcoming British general election is also weighing on Sterling investment amid political uncertainty. With the Tories pushing improved economic standing as a vote winner, the recent trade data will be fodder for the Labour Party and see traders speculate about a significant policy change.
Euro to Pound Sterling (EUR/GBP) Exchange Rate Forecast to Fluctuate
Given that the BoE Interest Rate Decision is due to be announced later on Thursday, and with developments in Greece still to unfold, the Euro to Pound Sterling (EUR/GBP) exchange rate is likely to fluctuate over the course of Thursday’s European session.
Friday should see plenty of EUR/GBP movement with several British economic data publications due for release. A lack of European data publications will likely see Euro movement dictated by geopolitics.
The Euro to Pound Sterling (EUR/GBP) exchange rate reached a high today of 0.7278.
