The Pound Sterling to Euro (GBP/EUR) exchange rate has advanced today following a supportive UK domestic data release, while the Euro (EUR) has given a mixed peer performance overall.
GBP/EUR Exchange Rate News: UK Deficit Reduction and Recession Reassurance Bolster Sterling Today
Pound Sterling (GBP) has moved in an overall positive direction this morning, although fluctuations have been limited. Among these positive shifts have been a fractional gain against the Euro (GBP/EUR) and greater advances of 0.3% against the New Zealand Dollar (GBP/NZD), 0.5% against the Swedish Krona (GBP/SEK) and 0.7% against the Australian Dollar (GBP/AUD).
The most beneficial development for the Pound today has stemmed from the first high-impact UK data of the week – the December trade balance stats. Forecasts were mixed across the board but the actual results showed greater-than-expected deficit reductions in both the visible trade balance and the total figure.
Another supportive event has been the estimation from Goldman Sachs that despite all of the unfavourable headwinds, there is only a close-to 0% chance of a UK recession occurring. Referring to previous dodged recessions, GS Chief US Economist Jan Hatzius said: ‘In each case, at least some financial markets were priced for [a] significant recession risk, if not an outright slump’. Thankfully for the Pound, at the time of writing the impact of the increasing number of ‘Brexit’ stories was fairly minimal, unlike last week.
Euro (EUR) Proves Uncertain Venture Today after German Let-down
The Euro (EUR) has been experiencing mixed movement today having risen to 0.4% against the South African Rand (EUR/ZAR) and 0.8% against the Australian Dollar (EUR/AUD), but fallen by -0.4% against the Swiss Franc (EUR/CHF) and only trended in a tight range against the Pound Sterling (EUR/GBP).
Eurozone data has generally been unsupportive today, as Germany’s December Industrial Production and Trade Balance results have both fallen overall on previous printings. In the case of trade, this has shown a discouraging reduction in the surplus from 20.5bn to 18.8bn.
GBP/EUR Exchange Rate Forecast: Production Figures due from UK and Eurozone Tomorrow
Tomorrow morning will see the announcement of a range of industrial and manufacturing production results for both the UK and the Eurozone in December; the printings to watch out for will be France and Italy’s positively predicted contributions, as well as the UK industrial and manufacturing production postings.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2882 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7764 today.
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