The Pound Sterling to Euro (GBP/EUR) exchange rate strengthened by around 0.34% on Monday morning.
After German economic data failed to meet with expectations on Monday morning, the single currency softened versus the majority of its most traded currency rivals. The shared currency is unlikely to make any significant gains until more is known about Greece’s proposal. The four-month extension to their debt repayment, however, has eased tensions regarding a Grexit.
The Pound, meanwhile, is riding a wave of speculation that the Bank of England (BoE) will be one of the first major central banks to hike rates.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3572.
Previously…
The Pound Sterling to Euro (GBP/EUR) exchange rate strengthened by around 0.25% at the tail end of last week.
After the majority of British economic data publications printed positively last week, the Pound strengthened versus nearly all of its major peers. Sterling gained additional support against the US Dollar after the Federal Reserve published dovish minutes. The Euro, meanwhile, struggled versus its most traded currency rivals with the potential Grexit looming overhead.
Pound Sterling (GBP) Exchange Rate Forecast to Advance on GDP
With positive sentiment towards the Bank of England (BoE) increasing amid speculation that the British institute will be one of the first major central banks to hike rates, the Pound is likely to continue its bullish run over the course of the coming week.
British Gross Domestic Product, due on Thursday, will be of most significance in terms of its potential to provoke volatility. A positive result will pressure the BoE into hiking rates and see the Pound surge against its rivals.
‘Falling unemployment coupled with improving wage growth and rock bottom inflation should mean that people see more money in their pockets. But businesses are looking on anxiously as insecurity continues to troll the Eurozone and instability remains elsewhere,’ said Katja Hall, the CBI deputy director general.
The coming week will be relatively sparse in terms of influential British data publications. However, for those invested in Sterling, the BBA Loans for House Purchase and Consumer Confidence data publications have the potential to provoke volatility.
Euro (EUR) Exchange Rate Forecast to Fluctuate on Influential Data
Over the coming week there will be several influential European data publications with the potential to drive changes in the common currency. Perhaps of most significance will be the German labour market data. German Unemployment Rate is expected to hold at 6.5%, whereas German Unemployment Change is forecast to drop from -9,000 to -10,000.
In addition; German Business Climate, German Current Assessment, German Expectations, German GDP, Eurozone Consumer Price Index, Eurozone Core CPI, German Retail Sales and German CPI will all be of interest to those trading with the single currency.
Although positive German data is likely to boost the Euro, it may also widen the divide between Germany and smaller nations in the Eurozone.
Consumer confidence data will be of interest for those invested in both the Euro and the Pound. With previous figures showing no sign of improvement despite low oil prices, there is heightened potential for a spike in confidence.
At the close of last week, the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3591.
