The Pound Sterling (GBP) has risen slightly against the Euro (GBP/EUR) today following the announcement that China will be investing billions into UK nuclear power.
UK Retail Sales Data to Open Major GBP/EUR Exchange Rate Day Tomorrow
Although tomorrow will bring the announcement of the European Central Bank (ECB) Interest Rate Decision, the first influence to the pairing will come with the announcement of the UK Retail Sales figure for September, which has been positively predicted.
Earlier…
The Pound Sterling (GBP) has trended narrowly in a negative against the Euro (GBP/EUR) today, an unusual development given the result of today’s Eurozone data.
UK Borrowing Data remains Next Major Influence on GBP/EUR Pairing
The German Producer Prices of the day have fallen into greater negatives than had previously been predicted and the Eurozone Current Account has similarly dropped compared to its previous amounts. In spite of this, however, the Pound (GBP) has slipped against the Euro (GBP/EUR) today.
The next major movement in the pairing is likely to come from tomorrow’s UK governmental Borrowing figures, which are still predicted to show reduced levels of borrowing compared to previous printings.
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate has risen slightly today, although with no direct UK data, this position may shift based on UK and Eurozone political-economic developments.
GBP/EUR Exchange Rate News: Sterling makes Minor Advances as Chinese State Visit Looms
The Pound Sterling (GBP) has made a few small gains against the Euro (GBP/EUR) and others today despite the UK Rightmove House Prices for October falling in both the monthly and yearly printings. The former recorded a drop from 0.9% to 0.6%, while the latter showed a drop from 6.4% to 5.6%. The only other major UK news this morning has been the announcement of Chinese President Xi Jinping’s state visit, which will last from October 20th to October 23rd. The purpose is ostensibly to solidify economic ties between the UK and China, something begun around a month ago when Chancellor George Osborne visited the Asian superpower for the purpose of repairing the frayed relations of the past decade by establishing financial links. The effect of this was almost immediately felt when Chinese investors quickly seized the opportunity to support the development of Hinkley Point C Nuclear Power Station.
The Pound has risen by 0.2% against the Euro (GBP/EUR) and 0.3% against the Chinese Yuan (GBP/CNY), the Indian Rupee (GBP/INR) and the Russian Ruble (GBP/RUB) today and has seen its greatest gain of 0.4% against the Swedish Krona (GBP/SEK). The most prominent losses have been by -0.2% against the Mexican Peso (GBP/MXN) and -0.5% against the Hungarian Forint (GBP/HUF).
Weak Construction Figures Undermine Euro’s (EUR) Performance Today
The Euro (EUR) has slipped today due to a negative posting in the Eurozone Construction Output figures for August. The monthly result fell from 0.4% to -0.2, while the yearly printing saw a greater drop from -0.3% to -6%. This news cannot be considered helpful on a week when the European Central Bank (ECB) Interest Rate Decision is due, along with a potential decision on further quantitative easing (QE).
The Euro has fallen by -0.2% against the Pound Sterling (EUR/GBP) today but has advanced by 0.2% against the Polish Zloty (EUR/PLN) and 0.3% against the Canadian Dollar (EUR/CAD).
GBP/EUR Exchange Rate Forecast: Developments with China and UK Borrowing Figures Likely to Shift Pairing This Week
The next movement in the GBP/EUR exchange rate is likely to come from any positive agreements reached or proposals made by Jinping on the first day of his visit tomorrow, as no notable UK results are due until Wednesday. The Eurozone will have input tomorrow from the German Producer Price results for September and the Eurozone Current Accounts for August, although the former has had pessimistic predictions made for it and the latter had no forecasts at the time of writing.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3625 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7341 today.
Comments are closed.