Pound Sterling to Euro (GBP/EUR) Exchange Rate Reverses Drop after Jobs Data
The Pound Sterling to Euro (GBP/EUR) exchange rate recouped all of the previous days declines during Wednesday’s European session as the UK was shown to have added over twice the number of jobs expected in the three months through December.
The more than 100,000 increase in positions pushed the UK unemployment rate down from 5.8% to 5.7%.
Average weekly earnings also increased by more-than-expected.
This, coupled with a less-than-impressive Construction Output report for the Eurozone, saw the Pound Sterling to Euro (GBP/EUR) exchange rate climb by 0.7% to achieve a high of 1.3558.
Earlier…
GBP/EUR Exchange Rate Extends Decline
Before the close of the European session, the Pound Sterling to Euro (GBP/EUR) exchange rate extended earlier losses, taking its daily decline to -0.6%.
It will take impressive UK employment figures to help the Pound recover losses tomorrow.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3464.
Earlier…
GBP/EUR Exchange Rate Trending Lower after CPI, ZEW
The Pound Sterling to Euro (GBP/EUR) exchange rate remained trading in a slightly softer position following the release of the UK’s inflation data, despite core CPI increasing unexpectedly.
Core inflation rose to 1.4% on an annual basis in January. but non-core inflation slowed from 0.5% to 0.3% – an over 25-year low.
Economist Howard Archer said this of the result; ‘With inflation likely to fall further and earnings growth now finally trending upwards, consumers should see appreciable improvement in their purchasing power as 2015 progresses. The rise in core inflation highlights the fact that the UK is far from suffering generalised deflation.’
While industry experts have been finding the positives in today’s UK inflation data, the Euro managed to outperform its British counterpart as the ZEW measures of economic sentiment for Germany and the Eurozone showed improvement.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3520
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate could soften if today’s UK inflation report falls short of forecasts.
GBP/EUR Exchange Rate News: Pound Gains after Eurogroup Meeting
The Pound to Euro (GBP/EUR) exchange rate climbed to a high of 1.3557 yesterday evening as the Greek debt negotiations ended badly.
Hopes that Greece and its creditors would reach an agreement were dashed as the nation rejected the Eurogroup’s proposal for its current debt programme to be extended while the negotiations continue.
However, the Pound trimmed these gains during the European session as investors focused on the UK’s inflation report.
The Pound Sterling to Euro (GBP/EUR) exchange rate fell to a low of 1.3492
The UK is due to release its CPI figures shortly and economists are projecting that inflation fell beyond a 25-year low in January.
If that proves to be the case, it could put some downward pressure on the Pound.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast: ZEW Surveys in Focus
The Pound Sterling to Euro (GBP/EUR) exchange rate could also soften if today’s ZEW Economic Sentiment Surveys for Germany and the Eurozone, and Germany’s Current Situation measure, climb.
The Pound Sterling to Euro (GBP/EUR) exchange rate achieved a high of 1.3557
Germany’s Economic Sentiment survey is expected to increase from 48.4 to 55.0 while the nation’s current situation index has been predicted to achieve 30.0 from 22.4.
Such strong readings, occurring at a time of major political uncertainty in Greece, would be Euro supportive.
January’s readings impressed, prompting this response from ZEW President Clemens Fuest; ‘The New Year started with turmoil in the capital markets. News of the upcoming parliamentary elections in Greece and the Swiss National Bank’s decision to abandon the Euro cap on the Franc’s value have led to strong market fluctuations. However, this seems not to have impressed ZEW’s financial market experts with regard to their expectations for the German economy. Instead, decreasing crude oil prices and a depreciating Euro have contributed to a further gain of the indicator.’
If today’s sentiment surveys fail to reach forecast levels, the Euro could give up some ground.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trading in the region of 0.7411
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5350
The US Dollar to Pound Sterling (USD/GBP) exchange rate is trading in the region of 0.6512
The Pound Sterling to Euro (GBP/EUR) exchange rate is trending in the region of 1.3492
