The Pound Sterling (GBP) has risen by a small amount against the Euro (GBP/EUR) today, less due to the Pound rising but more because today’s Eurozone-wide Retail PMIs have been failed to inspire investors by contracting in sub-50 figures.
Housing Data due for UK on Sunday ahead of German Figures on Monday
The Pound Sterling (GBP) will be affected first in the future, with the Halifax House Prices for November coming out on Sunday. Further ahead will be Monday’s German monthly and yearly Industrial Production figures, along with the Eurozone Sentix Investor Confidence score for December.
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate has risen today, although elsewhere the Pound (GBP) has been less clear in its movement against other peers.
GBP/EUR Exchange Rate News: UK PMIs Finally Pull Through as Airstrike Expansion Vote Passes
The Pound Sterling (GBP) has risen by 0.5% against the Euro (GBP/EUR) today; this has been offset by losses of -0.2% against the South African Rand (GBP/ZAR), -0.3% against the New Zealand Dollar (GBP/NZD) and -0.4% against the Australian Dollar (GBP/AUD). However, on the whole sizable gains such as 0.5% against the Hungarian Forint (GBP/HUF) and 0.7% against the Russian Ruble (GBP/RUB) have been observed.
The main detracting factor to the Pound’s value today has been the news that the now-expanded UK airstrike campaign has targeted oil production facilities in Syria, which has in turn driven up the price of the resource. On the positive side, however, the UK November Composite and Service PMIs have both printed above estimates at 55.8 and 55.9 respectively; the former had actually been predicted to decline.
EUR/GBP Exchange Rate Low ahead of European Central Bank (ECB) Policy Decision
The Euro (EUR) has been in a major downtrend today. This condition is only expected to deteriorate further in the near-future, when ECB President Mario Draghi may announce changes to current ECB stimulus policies after noon today. Prior to the announcement, Eurozone November Composite and Services PMIs have largely declined against estimates with the exception of Germany’s contribution.
The Euro has crashed to 0.5% against the Pound Sterling (EUR/GBP) and the South African Rand (EUR/ZAR) today and made greater losses of -0.7% against the New Zealand Dollar (EUR/NZD) and -0.8% against the Australian Dollar (EUR/AUD).
GBP/EUR Exchange Rate Forecast: ECB Policy News Likely to Send Euro Crashing into Weekend
The next economic event likely to affect the Euro will come shortly with the announcement of the ECB’s latest policy decision.
Speaking on the potential effects the decision could have on the Euro’s future value, Ilya Spivak, a Currency Strategist at DailyFX stated: ‘The markets seem primed for a big-splash accommodative gesture, raising the bar on the ECB to deliver a dovish-enough result to mollify investors and increasing the threat of disappointment. If traders are left unimpressed, the Euro (EUR) is likely to rise amid profit-taking on short positions while broad-based risk appetite deteriorates, weighing on sentiment-linked FX including the Australian and New Zealand Dollars’.
The Pound’s (GBP) remaining contribution to the pairing is somewhat less impressive, with the annual UK New Car Registrations for November figure due out tomorrow. No forecasts had been made for the result 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 1.4143 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7071 today.
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