Pound Sterling to Euro (GBP/EUR) Exchange Rate Bounces above 1.32
As the European Central Bank’s quantitative easing programme exceeded expectations in terms of size and duration, amounting to over 1 trillion Euros and running to September 2016, the Euro flat-lined in the wake of ECB President Mario Draghi’s policy announcement.
The Pound Sterling to Euro (GBP/EUR) exchange rate jumped by over 1% to hit a high of 1.3207 before returning to trend in the region of 1.3193.
According to industry expert Harry Adams; ‘Although a fair amount of euro weakness was priced in prior to today’s announcement, further pressure will be put on the single currency with flow moving towards the dollar and the Pound. The ECB have met expectations and possibly exceeded, but time will tell.’
Earlier…
GBP/CHF 0.2% Softer, but GBP/EUR Exchange Rate Steady
Ahead of the European Central Bank’s (ECB) monetary policy announcement the Pound was trading in a slightly weaker position against the Swiss Franc (GBP/CHF) but was trending in a narrow range against the Euro.
The Pound derived some support from comments issued by Bank of England (BoE) official David Miles on the subject of inflation.
Miles asserted that the UK was in no danger of entering deflation and that the central bank needs to look at inflation trends when deciding policy moves rather than individual sets of CPI data.
However, Sterling gains were limited as the UK’s budget deficit was shown to have increased by more-than-expected.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3049
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate was trading in the region of 1.2995
Earlier…
GBP/CHF, GBP/EUR Exchange Rates Decline after Minutes
In the immediate aftermath of the publication of minutes from the latest Bank of England (BoE) policy meeting, the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate fell to a low of 1.2967 while the Pound Sterling to Euro (GBP/EUR) exchange rate dropped to 1.2999.
The fact that the minutes showed that the Monetary Policy Committee was unanimous in its decision to leave interest rates on hold saw the Pound post widespread declines.
This was the first time in several months that all nine members of the MPC voted against increasing borrowing costs and was seen as a sign that the BoE will hold off adjusting that aspect of fiscal policy until the end of this year or the beginning of next.
Pound declines were a little limited however as the UK’s jobs data showed the increase in average earnings expected.
Unemployment also fell by more-than-anticipated, sliding from 6.0% to 5.8%.
Jobless Claims Change also exceeded expectations. So far the positive aspects of the employment figures haven’t helped Sterling claw back its initial losses, but the currency could recover against the Euro tomorrow following the European Central Bank’s policy announcement.
Earlier…
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate was trending lower prior to the publication of the UK’s employment figures.
Meanwhile, the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in a narrow range after registering a one cent daily gain on Tuesday.
Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Down 0.7% Before Jobs Report
Ahead of the publication of the UK’s unemployment, average earnings and jobless claims figures, the Pound Sterling to Swiss Franc exchange rate was trending in the region of 1.3144.
The pairing lost over 0.7% during the early hours of the European session as the fallout from last week’s shocking Swiss National Bank (SNB) policy decision continued to be felt.
Swiss Money Supply data, which came in at 3.3% on the year in December (down from 3.6% in November) had little impact on the GBP/CHF pairing.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate achieved a high of 1.3300
Pound Sterling to Euro (GBP/EUR) Exchange Rate Could Push Beyond 6-Year High Today
Yesterday’s upbeat ZEW economic sentiment surveys for Germany and the Eurozone as a whole failed to have a notable impact on the Euro as investors fixated on the upcoming policy announcement from the European Central Bank (ECB).
Concerns regarding the weekend’s Greek general election also weighed on the common currency.
Over the course of local trading the GBP/EUR pairing was able to record a one cent daily gain and was trending around a six-year high.
The Pound could push higher still against its European relation later today if the UK’s employment figures print in line with forecasts.
The Pound Sterling to Euro (GBP/EUR) exchange rate brushed a low of 1.3065
Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Forecast
While UK news is likely to have the biggest impact on the direction taken by the Pound Sterling to Swiss Franc exchange rate today, investors will also be taking an interest in Switzerland’s ZEW economic expectations survey for January.
The gauge came in at -4.9 in December.
The SNB’s recent decision to scrap its 1.20 cap with the Euro and push interest rates further into negative territory is likely to have had an impact on confidence.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast
Data for the Eurozone is in short supply today so movement in the GBP/EUR pairing will be driven by the UK reports ahead of tomorrow’s highly-anticipated European Central Bank policy announcement.
If the central bank unveils extensive stimulus measures, the Pound Sterling to Euro (GBP/EUR) uptrend could continue into the weekend.
However, should the central bank fail to outline aggressive measures, the Euro could recover much of its recent losses and the GBP/EUR pairing could drift back below the 1.30 level.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is currently trading in the region of 1.3132
The Swiss Franc to Pound Sterling (CHF/GBP) exchange rate is currently trading in the region of 0.9945
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trading in the region of 0.7650
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trading in the region of 1.3076
