In the wake of poor results from British trade balance data, the Pound Sterling to Euro (GBP/EUR) exchange rate has declined by around -0.24%. Positive data from the currency bloc’s most powerful economy has also aided an uptrend for the common currency.
The Pound Sterling to Euro exchange rate is currently trending in the region of 1.2763.
British Data Sinks Sterling (GBP)
Friday’s British data left a lot to be desired. Visible Trade Balance softened beyond expectations from £-8950 to -£-9821. Non EU Trade Balance was forecast to equal the previous figure of -£3700, but the actual data showed a decline to -£4048. Total Trade Balance fell beyond the median market forecast of a drop from -£1768 to -£2300, with the actual result declining to -£2838.
The Pound Sterling to Euro exchange rate has dropped to a low today of 1.2749.
German Data Boosts Euro (EUR)
The common currency has enjoyed a healthy surge against the majority of its most traded currency competitors on Friday. This is as a result of better-than-expected German economic data. Yearly non-seasonally adjusted German Industrial Production was forecast to increase from -1.9% to -0.6%, but the actual result reached -0.1%. German Trade Balance advanced beyond the median market forecast of a rise from 14.0 billion to 19.0 billion, with the actual data having risen to 21.9 billion.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Soften
Currently Bank of England Governor Mark Carney is making a speech on monetary policy in Paris. Given that the most recent policy meeting showed BoE officials reluctance to move away from the ultra-low interest rate, the speech is unlikely to have any hawkish overtones. Once traders have had time to digest Carney’s words, the GBP/EUR exchange rate is likely to decline further.
The Pound Sterling to Euro exchange rate has advanced to a high today of 1.2797.
GBP/EUR Exchange Rate Holds in Low Position
The Pound Sterling to Euro exchange rate is currently trending in the region of 1.2769.
Although the Bank of England Governor Mark Carney’s speech in Paris on Friday had little to do with domestic affairs, his comments have increased negative sentiment towards the institution. Carney suggested that if central banks tighten their monetary policy, financial market volatility could return.
The current ‘low volatility environment’ will change as central banks move to raise rates, the Governor said.
The common currency, meanwhile, has held its advance against many of its most traded peers.
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,
,US Dollar,1.2424,
Euro,,Canadian Dollar,1.4115,
Euro,,Pound,0.7840,
Euro,,Australian Dollar,1.4416,
US Dollar,,Euro,0.8048,
Canadian Dollar,,Euro,0.7084,
Pound Sterling,,Euro,1.2753,
Australian Dollar,,Euro,0.6935,
[/table]
