The Pound Sterling’s (GBP) faring against the Euro (GBP/EUR) has deteriorated greatly since earlier, with the UK currency hitting -1.6% this afternoon. This has come from an increasingly sour response from investors over the UK’s Construction Output figures for November and 2015, both of which fell into negative ranges.
Scarcity of Remaining Relevant GBP/EUR Pairing Data due before Weekend
With most of the week’s and virtually all of the day’s GBP/EUR exchange rate-related data now out, the only remaining Eurozone release likely to cause movement will be the imminent Belgium Balance of Trade results for November. At the time of writing, forecasts had been for a decline in the national surplus from €2773m to €1769m.
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate has fallen by -0.6% this morning, following the Euro (EUR) going on a major uptrend despite unsupportive releases working against this.
Sole Eurozone Positivity This Morning has Come from Dutch Data Release
While the Euro (EUR) has rallied today, this has only really been enabled by the Dutch Balance of Trade result for November, which has shown an increase in the size of the surplus from €3.92bn to €4.17bn. Elsewhere, the Netherlands Retail Sales on the year in November have declined, along with the Finnish GDP for the same period and the Spanish Inflation Rate results for December.
Earlier…
After being on the back foot for most of the day, the Pound Sterling (GBP) has finally managed to scrape a gain of 0.2% against the Euro (GBP/EUR).
ECB Dovishness Discouraged Investors Today after December Meeting Details Revealed
A possible cause behind the softening of the Euro (EUR) today could be the reaction of economists to the European Central Bank (ECB) December meeting minutes being released today.
In the document, it was shown that policymakers were caught in a state of disagreement over how big of a threat China’s unpredictable economic motions were to the future value of both the Euro and other currencies.
Earlier…
The Pound Sterling (GBP) has improved greatly on its earlier loss against the Euro (GBP/EUR), although at the time of writing, the UK currency was still trending in a negative range against the single currency.
BoE Interest Rate Decision Predictions Thrown into Flux by Today’s Announcement
The most impactful UK economic event of the day, the Bank of England (BoE) Interest Rate Decision, has resulted in a number of reactions from leading economists regarding when the BoE could finally raise the rate.
Royal London Asset Management economist Ian Kernohan has predicted that the decision will take place later in the year, with an assurance that no hike will come before the ‘Brexit’ referendum.
At the EY ITEM Club, Martin Beck has echoed this opinion by tentatively putting ‘towards the end of the year’ as the likely time for UK interest to finally get a raise.
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate has fared poorly today, due to both Bank of England’s (BoE) recent Interest Rate Decision and the conversely rallying state of the Euro (EUR).
GBP/EUR Exchange Rate News: Investors left Uninspired by Echoed BoE Interest Rate Decision
Pound Sterling (GBP) has been performing in an unsatisfactory manner today, with the BoE decision offering little consolation to investors in the Pound. While no expectations were for an interest rate increase from 0.50%, economists were not even rewarded for their patience with a 2/7 split among policymakers as, once again, Ian McCafferty was the sole hawk among his more dovish colleagues.
The announcement didn’t lessen the Pound’s value, but given that it was declining overall beforehand, the news did nothing to raise its appeal.
The Pound’s losses today have included -0.3% against the Euro (GBP/EUR) and -0.5% against the Romanian Leu (GBP/RON), while gains of 0.4% against the Indian Rupee (GBP/INR) and 0.7% against the New Zealand Dollar (GBP/NZD) have also been recorded. Although disadvantageous, this nonetheless represents an improvement in the GBP/EUR pairing compared to earlier in the week.
Euro (EUR) Value Consistently High Today after German GDP Figures
The Euro (EUR) has been on an uptrend for most of the day, having been given an early lead by the forecast-meeting German GDP results for 2015. The base figure rose from 1.6% to 1.7% as expected, which was the best result for the country in four years.
The Euro’s greatest gains today have included 0.3% against Pound Sterling (EUR/GBP) and 0.9% against the Indian Rupee (EUR/INR) and the New Zealand Dollar (EUR/NZD).
GBP/EUR Exchange Rate Forecast: Draghi Speech due Shortly, UK Construction Stats Out Tomorrow
With the first BoE Interest Rate Decision of 2016 now out of the way, the next economic event likely to affect the GBP/EUR pairing will come from the highest Eurozone economic authority, European Central Bank (ECB) President Mario Draghi.
Draghi is due to speak imminently at the Eurogroup Meeting, during which the policymaker may outline his planned direction for the single currency in the present year. For context, when Draghi last spoke at the start of December, the Euro was put into a jam when investors realised that his ‘soft-touch’ approach to quantitative easing was unlikely to provide immediate relief to the currency bloc’s problems.
Looking further ahead, the next UK economic release will be tomorrow morning’s Construction Output results for November and 2015 as a whole. Forecasts have been for a rise in November from 0.2% to 0.5% but a fall from 1% to -0.1% on the year. Despite these predictions, the data is nonetheless considered to be ‘low-impact’.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3206 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7573 today.
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