The Pound Sterling (GBP) has crashed abysmally by -0.8% against the Euro (GBP/EUR) today and has fared little better, if not worse, against most of its other currency competitors.
Soft Pound (GBP) Offers Support to UK Exporters, says EY ITEM Club’s Beck
In response to this morning’s falling Industrial and Manufacturing Production results for the UK in November, Martin Beck of the EY ITEM Club has stated that while ‘the recent fall in the Pound should provide some support to exporters, it is difficult to find many other reasons for optimism around the Manufacturing sector’.
Earlier…
The Pound Sterling (GBP) has fallen against the Euro (GBP/EUR) today due to a reduced level of confidence in the UK economy after this morning’s clear slowdown to 0.1% in the yearly BRC Like-for-Like Sales covering December.
ECB Official Speeches due Today, Potential QE References in Store for Euro (EUR)
The most impactful events in the Eurozone today are likely to be speeches from ECB members Peter Praet (this morning) and Sabine Lautenschlaeger (this evening). Any mentions of quantitative easing are sure to get the common currency (EUR) moving, although the exact context will obviously determine in which direction it goes.
Earlier…
The Pound Sterling (GBP) has slipped slightly against the Euro (GBP/EUR) today to 0.50%, but has otherwise remained in a dominant position against many of the usual peers.
Single BoE MPC Member Change could Send Sterling (GBP) Soaring on Thursday
The biggest economic event for the Pound (GBP) this week will be Thursday’s Bank of England (BoE) Interest Rate Decision, the first of 2016. In recent memory, the recurrent factor in the minutes has been an overwhelming air of caution from policymakers and Ian McCafferty being the sole hawk amongst the pack.
If Sterling is to get a major boost in appeal, even a 2/7 vote in favour of a rate hike would likely achieve this result.
Earlier…
The Pound Sterling (GBP) has risen to 0.7% against the Euro (GBP/EUR) today, mainly due to the day’s Eurozone publications not being particularly supportive towards the Euro’s (EUR) movement.
Latvian Trade Figures Fail to Revitalise Euro’s (EUR) Prospects Today
The Euro’s last major piece of data today, the Trade Balance figures for Latvia in November, has been unable to boost the Euro’s performance into a positive area. Forecasts were for a decline in the deficit from -€143m to -€88.7m, but the reality only showed movement to -€124.7m.
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate has advanced today and Sterling has been faring well against its other major peers. The Euro (EUR), on the other hand, has been severely softened by dark forecasts for the future of the Eurozone.
GBP/EUR Exchange Rate News: UK Referendum Talks Heat Up as PM sets Provisional Summer Date
The Pound Sterling (GBP) has been performing well today, having secured gains of 0.5% against the Euro (GBP/EUR) and the Swiss Franc (GBP/CHF) as well as 1.4% against the Russian Ruble (GBP/RUB) and 2% against the South African Rand (GBP/ZAR). These gains come as a more solid improvement on last week’s sporadic Sterling trends.
With no domestic data to refer to yet, investors have instead relied on the news that PM David Cameron has optimistically claimed that an agreement could be reached with EU leaders over UK Referendum conditions as early as February. If this proves accurate, Cameron will have a relatively clean slate on which to set the date of the vote itself, which according to estimates could be as soon as June or July this year.
Euro (EUR) Weakened Today by Potential for Further Greek Turmoil in the Future
The Euro (EUR) has been downtrending strongly today, both on account of scarce and disappointing domestic data, as well as due to a potentially dangerous development in the Greek political theatre.
In the former area, the Eurozone Sentix Investor Confidence score for January has disappointed investors by falling from 15.7 points to 9.6, although Spain’s more impactful Industrial Production printing on the year in November has actually risen from 4.1% to 4.2%.
Potentially the greatest detriment to the Euro today has been the news out of Greece that Kyriakos Mitsotakis has been elected leader of the opposition New Democracy party. Considered to be a far more formidable threat to PM Alexis Tsipras’ tenuous coalition government than his predecessors, Mitsotakis is unlikely to ease the tensions surrounding the Greek parliament and its battle to stabilise the country’s economy.
GBP/EUR Exchange Rate Forecast: ECB Speeches Due Tomorrow
Tomorrow will see the first UK economic publications of the week, along with further input to the GBP/EUR exchange rate from the latter side.
The UK’s first releases tomorrow morning will be the BRC Like-for-Like Sales figure on the year in December, along with the Industrial and Manufacturing Production results for November. The only notable forecasts made at the time of writing were pessimistic with regards to the annual Manufacturing printing.
The Euro (EUR) is likely to be moved by speeches delivered tomorrow by European Central Bank (ECB) officials Peter Praet in the morning and Sabine Lautenschlaeger in the evening.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3351 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7492 today.
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