The Pound to Euro (GBP/EUR) exchange rate made gains on Monday after UK PMI data suggested that a forecast UK slowdown will not be as severe as forecast.
Despite Eurozone inflation data reigniting fears of deflation, the Pound Sterling to Euro (GBP/EUR) exchange rate softened by around -0.48%. This can be attributed to less-than-ideal British data and better-than-expected Greek and Portuguese economic growth.
The Pound Sterling to Euro exchange rate is currently trending in the region of 1.2564.
Earlier…
The Pound to Euro (GBP/EUR) exchange rate fell further as Fridays session progressed after economists deemed a speech on immigration by Prime Minister David Cameron as a sign that the UK is getting closer to leaving the EU.
The Pound to Euro (GBP/EUR) exchange rate softened on Friday after UK house price data weighed and despite Eurozone inflation falling to a new five year low.
Earlier in the session, the Euro inched higher against Sterling after data showed that retail sales in Germany strengthened at their fastest monthly pace in more than three years. According to the German Federal Statistics Office, German retail sales increased by 1.9%, the highest figure seen since the 2.6% increase recorded in June 2011.
Further gains for the Euro however were restrained as data out of France showed that consumer spending in the regions second largest economy fell by 0.9% in October from September, the largest monthly decline recorded since June 2013. Economists had been expecting French consumer spending to increase by 0.2%.
Sterling meanwhile was softened as data released by polling company GfK showed that consumer morale in the UK remained steady in November, raising concerns that confidence is set to slide as forecasts suggest that the nation’s economy will soften over the next few weeks.
‘The government will be hoping to go into the general election on a rising tide but unless the public gets another burst of good economic news it’s hard to see this happening anytime soon,’ said Nick Moon, Gfk’s managing director for social research.
As the session progressed the GBP/EUR exchange rate weakened to hover around the 1.26 level as softer than expected UK housing data prevented the Pound from taking advantage of more disappointing Eurozone inflation data.
In a report, the Nationwide Building Society said that U.K. house price inflation rose 0.3% in November, less than the expected 0.4% increase, after a 0.5% gain the previous month.
Year-on-year, U.K. house prices rose 8.5% this month, below forecasts for an increase of 8.6%, down from a 9.0% rise in October.
The Euro meanwhile was able to firm as investors chose to focus on the positive German retail sales data and shrugged off the inflation report which showed that inflation across the Eurozone fell to a new five-year low of 0.3%. The decline matched economist expectations.
A separate unemployment report meanwhile showed that the regions jobless rate remained at 11.5%.
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound,
,Euro , 1.2574,
US Dollar,,Euro , 0.8009,
Canadian Dollar,,Euro , 0.7026,
Australian Dollar,,Euro , 0.6821
New Zealand Dollar,,Euro , 0.6293,
[/table]
