The Pound Sterling (GBP) has fallen by a small amount against the Euro (GBP/EUR) today, due to yesterday’s excessive Bank of England dovishness carrying over to this morning.
UK Trade Balance Figures due to affect GBP/EUR Pairing in Near Future
The next UK data likely to trigger exchange movement will be Trade Balance results for September that are due out imminently; at the time of writing, forecasts were for slight reductions in the current UK trade deficit.
Earlier…
The Pound Sterling (GBP) has trended narrowly in a negative range against the Euro (GBP/EUR) today, mainly on account of the lack of uncertainty regarding the voter distribution in the upcoming BoE Interest Rate Decision.
3-6 Split Predicted by some Economists; Like Posting would Likely Trigger GBP Rally
The next result due to move the GBP/EUR pairing dramatically will be the upcoming set of BoE announcements; at the time of writing, the most optimistic expectations had a 3-6 divide between those voting for and against an interest rate rise, although other than Ian McCafferty, opinions have been mixed over who the other two dissenters could be.
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate has advanced by a small amount today, although Sterling (GBP) has posted greater gains against other rivals on the news that the UK PMIs for October have come out positive as per Monday.
Exchange Rate News: Major Boost for GBP/EUR as Sector Support comes In
The Pound (GBP) has advanced by 0.3% against the Euro (GBP/EUR) today; this has constituted just one of a number of sizable gains for Sterling. Other such rises have included 0.7% against the Romanian Leu (GBP/RON), 0.8% against the New Zealand Dollar (GBP/NZD) and 0.9% against the Hungarian Forint (GBP/HUF). Losses have been few and far between, with a decline of -0.2% being recorded against the US Dollar (GBP/USD) and the Swiss Franc (GBP/CHF).
The greatest contributor to the Pound’s rise has been the forecast-exceeding result of both the UK Composite and Services PMI for October. The former has risen from 53.3 to 55.4, while the latter has grown from 53.3 to 54.9. This result has echoed Monday’s UK PMI dividend that was brought about by the October Manufacturing PMI rising far above predictions of a decline.
Single Currency Flops in EUR/GBP Exchange Rate and Overall on PMI Letdown
The Euro (EUR) has had a virtually opposite faring compared to the Pound (GBP) today; it has declined against almost every rival due to the main two Eurozone PMI contributors (Germany and the Eurozone itself) both printing declining Services and Composite PMIs for October.
The Euro has fallen by -0.4% against the Canadian Dollar (EUR/CAD) and the Pound Sterling (EUR/CAD) today, with greater losses of -0.5% against the Swiss Franc (EUR/CHF) and the US Dollar (EUR/USD) also being recorded. Gains have been seen of 0.2% against the South African Rand (EUR/ZAR) and 0.4% against the New Zealand Dollar (EUR/NZD).
GBP/EUR Exchange Rate Forecast: BoE’s ‘Super Thursday’ set to Cause Major Movement Tomorrow
Both the Eurozone and the UK have economic releases due out tomorrow, although given the nature of the UK’s data, it is sure to be more impactful than the numerically superior results from across the Channel.
The Bank of England (BoE) Interest Rate Decision, the accompanying minutes as well as the BoE’s Inflation Report are all out tomorrow, providing the Pound Sterling (GBP) with two opportunities to rally on positive outcomes. No change is expected to occur in the actual interest rate until 2016 at the earliest, but the minutes could provide hints as to when the BoE is thinking of raising the rate in the coming year.
The Eurozone will get representation from tomorrow’s September German Factory Orders and German, French, Italian and Eurozone Retail PMIs for October, along with the European Commission’s Economic Forecasts for the future.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4117 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7084 today.
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