The Pound Sterling to Euro exchange rate advanced by around 0.20% after the British Retail Consortium (BRC) showed retail sales registered moderate growth. A complete absence of European data on Tuesday has meant the common currency has experienced modest movement as a result of general foreign currency shifts.
The Pound Sterling to Euro exchange rate is currently trending in the region of 1.2778.
Sterling (GBP) Strengthens on Retail Sales Data
A solitary British economic data publication on Tuesday has printed positively, urging the Pound to appreciate against many of its major peers. The British Retail Consortium’s (BRC) Like-for-Like Sales figure eclipsed the market consensus of growth from -2.1% to -0.5%, with the actual result advancing to 0.0%.
‘Promotions remained rife in the grocery sector, leaving it with the unenviable moniker of the worst performing sector. The silver lining for the sector is that the three-month average like-for-likes, whilst still negative, were not as bad as in September which will be welcome relief in the midst of negative news,’ stated David McCorquodale, head of retail at KPMG.
The Pound Sterling to Euro exchange rate has fallen to a low today of 1.2739.
QE Bets Hold Back Euro (EUR)
Futures traders have increased bets that the European Central Bank (ECB) will have to resort to full scale quantitative easing in order to shore up the flagging Eurozone economy. ‘It may take QE to get the Euro down sufficiently to support growth in the Eurozone,’ said Mark Zandi, chief economist at Moody’s Analytics.
A complete absence of European economic data to curb the downtrend has only aided the single currency depreciation.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Strengthen
With mounting negative sentiment towards the single currency and the ECB, the GBP/EUR exchange rate is likely to continue trending higher ahead of the release of tomorrow’s influential UK reports. The possibility of QE is not the only anxiety for traders regarding the Euro, but the likelihood of QE measures having only a minimal impact is the greatest concern.
The Pound Sterling to Euro exchange rate has reached a high today of 1.2782.
UPDATE
GBP/EUR Exchange Rate Edges Higher on QE Fears
The Pound Sterling to Euro exchange rate is currently trending in the region of 1.2765.
Although the GBP/EUR exchange rate has softened a little since the initial surge brought about by better-than-expected UK retail sales, the GBP/EUR exchange rate is still holding an advance of around 0.09%.
Euro depreciation is as a result of trader anxieties over the ECB QE threat, and its effectiveness towards tackling the flagging Eurozone economy. ‘The fact that ECB President Mario Draghi has been so successful in supporting markets to date with other methods (means that) the incremental benefit from large-scale QE is probably more muted,’ said Simon Smiles, Chief Investment Officer at UBS Wealth Management.
GBP/EUR Exchange Rate Trending Lower on Unwarranted Euro Downtrend
The Pound Sterling to Euro exchange rate is currently trending in the region of 1.2747.
After the Euro plummeted amid trader anxieties that the European Central Bank will have to resort to full-blown quantitative easing, the single currency has recovered some of its losses as traders pare back the downtrend.
GBP/EUR Exchange Rate Fluctuates on Mixed German Data
The Pound Sterling to Euro exchange rate is currently trending in the region of 1.2771.
On Wednesday the Pound has fluctuated against many of its most traded currency competitors as traders await the British labour market data due for publication later on Wednesday morning. Average Weekly Earnings will be closely watched as wage growth is one of the factors hindering a benchmark rate increase.
The single currency, meanwhile, has also fluctuated against its major peers after German data produced mixed results. The monthly German Wholesale Price Index declined from 0.1% to -0.6%, but the yearly figure ticked up from -0.9% to -0.7%.
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,1.2408,
Euro,,Canadian Dollar,1.4138,
Euro,,Pound,0.78311,
Euro,,Australian Dollar,1.4408,
US Dollar,,Euro,0.8058,
Canadian Dollar,,Euro,0.7073,
Pound Sterling,,Euro,1.2771,
Australian Dollar,,Euro,0.6941,
[/table]
