The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending within a tight range. This is due to a combination of quiet Christmas trading and investors waiting for British data. The shared currency, however, has found a little support after French growth figures met with the median market forecast figures.
The Pound Sterling to Euro exchange rate is currently trending in the region of 1.2739.
Yesterday…
The Pound Sterling to Euro (GBP/EUR) exchange rate softened by around -0.30% on Monday afternoon. This is as a result of rising oil prices easing pressure on the Euro area, reducing anxieties that Russia’s financial situation will weigh heavily. The Pound, meanwhile, has generally responded to changes in foreign currency movement thanks to a complete absence of domestic data.
The Pound Sterling to Euro exchange rate is currently trending in the region of 1.2737.
Quiet Christmas Trading Sees Pound (GBP) Exchange Rate Hold Steady
The combination of quiet Christmas trading and an absence of domestic data have seen the Pound move with developments in the wider currency market. A slight depreciation versus its major peers, however, is as a result of a lack of confidence in several British Bank’s ability to combat cyber terrorism.
Minutes from the most recent BoE policy meeting stated; There is ‘a tendency among firms to view cyber threats as a technical problem rather than an issue which merits board-level attention given the evolving nature of cyber threats and the key importance of cyber resilience to continuity of financial services.’
The Pound Sterling to Euro exchange rate has dropped to a low today of 1.2731.
Euro (EUR) Strengthens on QE Bets and Oil Prices
Although German data printed poorly on Monday, the Euro strengthened against the majority of its most traded rivals. This is possibly as a result of traders changing their stance on quantitative easing stimulus to be introduced by the ECB in January. On first mention of QE, the single currency dived against its rivals. However, it seems like a necessary action in order to prevent a serious Eurozone financial crisis.
After oil prices recovered some of the losses on Monday morning, the shared currency strengthened against many of its rivals. Russia’s financial worries eased after oil rebounded a little, which in turn reduced concerns that the situation in Russia will weigh on the Euro area.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Trend Lower
With an absence of domestic data to curb the trend, the Pound Sterling to Euro exchange rate is likely to continue trending lower. With that being said, however, Eurozone Consumer Confidence data has the potential to provoke changes for the pairing.
The Pound Sterling to Euro exchange rate has advanced to a high today of 1.2782.
