The Pound Sterling to Euro (GBP/EUR) exchange rate rallied by around 0.35% on Monday, which can be attributed to disappointing data out of the 18-nation currency bloc’s most influential economy. The Pound, meanwhile, has advanced against many of its most traded currency rivals after domestic data showed improvement.
The Pound Sterling to Euro exchange rate is currently trending in the region of 1.2723.
Pound Sterling (GBP) Exchange Rate Strengthens on Employment Confidence
In the aftermath of positive British data on Monday, the Pound Sterling strengthened against the majority of its most traded peers. Lloyds Employment Confidence ticked higher from 0 to 1.
Compounding Sterling gains was news from the Bank of England (BoE) that UK household spending could withstand gradual rate increases. However, many of the central bank’s policymakers still fear that sluggish wage growth and risks from the Euro area has too large an impact for the bank to risk revising rates.
‘These results do not imply that increases in interest rates from their current historically low level would have unusually large effects on household spending,’ the BOE said in its Quarterly Bulletin, published today. ‘The outlook for household income is a key factor that will determine the vulnerability of households to a rise in interest rates.’
The Pound Sterling to Euro exchange rate has dropped to a low today of 1.2654.
Euro (EUR) Exchange Rate Softens on German Data
After German data printed negatively on Monday, the shared currency slumped against nearly all of its most traded currency rivals. Year-on-year German industrial Production failed to meet with the median market prediction of a rise from 0.1% to 0.9%, with the actual result only reaching 0.8%. On a monthly basis, German Industrial Production declined from 1.1% to 0.2%, well below the market consensus of a drop to 0.4%.
Eurozone Investor Confidence Printed positively, but it has had minimal impact of Euro movement. Eurozone Investor Confidence eclipsed the forecast of a rise from -11.9 to -9, with the actual result reaching -2.5.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Trend Higher
With mounting negative sentiment towards the common currency amid fears of sluggish economic growth, the Pound Sterling to Euro (GBP/EUR) exchange rate is likely to continue trending higher.
The Pound Sterling to Euro exchange rate has reached a high today of 1.2739.
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,1.2265,
Euro,,Canadian Dollar,1.4026,
Euro,,Pound,0.7850,
Euro,,Australian Dollar,1.4759,
US Dollar,,Euro,0.8152,
Canadian Dollar,,Euro,0.7130,
Pound Sterling,,Euro,1.2738,
Australian Dollar,,Euro,0.6775,
[/table]
