The Pound Sterling to Euro (GBP/EUR) exchange rate has risen today; elsewhere, the Pound (GBP) has seen a mixture of gains and losses on a day of no domestic data.
GBP/EUR Exchange Rate News: Sterling Trending Higher as UK Unemployment Falls
The Pound Sterling (GBP) has advanced by 0.3% against the Euro (GBP/EUR) today, although its performance elsewhere has been somewhat lacking. Rises have included 0.4% against the Polish Zloty (GBP/PLN) and the Russian Ruble (GBP/RUB), but losses have been made up of declines of -0.4% against the Australian Dollar (GBP/AUD), -0.5% against the Israeli New Shekel (GBP/ILS), -0.7% against the Turkish Lira (GBP/TRY) and -0.9% against the New Zealand Dollar (GBP/NZD).
The UK has had no Pound-centric releases out today, although developments have been taking place regarding the Bank of England (BoE). It was announced today that the BoE would be putting into place plans that require UK banks to put billions of Pounds into ‘ring-fences’ in order to provide contingencies against future financial crises. BoE Deputy Governor Andrew Bailey Andrew Bailey stated that: ‘Making our firms more resilient has been at the forefront of our post-crisis reform agenda’. In essence, placing such large sums of money in ‘untouchable’ ring-fences is designed to eliminate the possibility of taxpayers having to bailout banks in the event of another credit crash.
Common Currency (EUR) has Stormy Day as Negativity Washes over the Eurozone
The Euro (EUR) has had a rough day today, falling by -0.3% against the Pound Sterling (EUR/GBP) and others due to a multitude of detrimental events affecting the Eurozone recently. In addition to suffering from lacklustre Industrial Production data yesterday, the Euro has also failed to gain any traction due to news of further deception on the part of Volkswagen; this time the issue is thought to be with 2016 models that have yet to be released.
Elsewhere, European Central Bank (ECB) Governing Council member Ewald Nowotny has urged that in order to increase the rate of Eurozone price growth: ‘It’s quite obvious that additional sets of instruments are necessary’. Nowotny stipulated that the ‘instruments’ should be structural reforms and measures to stimulate demand, which was widely interpreted as meaning further quantitative easing (QE) would be in store.
GBP/EUR Exchange Rate Forecast: Eurozone Data Dominant Tomorrow as UK Releases Fizzle Out
Although a UK report is due tomorrow, it are unlikely to have much impact on the GBP/EUR pairing given the low level of importance assigned to it. The 10-Year Treasury Gilt Auction is due in the morning, although more potent Eurozone results are due out before this. While New Car Registration and Trade Balance figures are due, the main attraction will be the announcement of the Eurozone CPIs for September.
As the European Central Bank (ECB) continues to struggle with the decision to raise, freeze or cut the interest rate, the results of tomorrow’s inflation rate data will be closely scrutinised by both investors and policymakers. For reference, the next ECB interest rate decision is due a week from today on October 22nd.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3542 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7387 today.
Comments are closed.