The Pound Sterling (GBP) has scraped a gain against the Euro (GBP/EUR) today, with the single currency being in a state of levelling out following the Eurogroup meeting this afternoon.
UK CBI Sales Likely to be Overruled by German Data Tomorrow
The next UK data will be the CBI Reported Sales figures for October, although the high-impact nature of the German economic releases may just eclipse the predicted positive for the CBI figure.
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate has declined today, although the Pound (GBP) has still managed to maintain notable rises against many of its other competitors.
GBP/EUR Exchange Rate News: Mostly Positive Sterling Performance comes from UK Defence Spending News Today
The Pound Sterling (GBP) has fallen by -0.3% against the Euro (GBP/EUR) today, which has been one of relatively few losses for the Pound; another pairing in this category has been a -0.5% drop against the Swedish Krona (GBP/SEK). Pound Sterling has elsewhere risen by 0.5% against the Hungarian Forint (GBP/HUF), 0.7% against the Australian Dollar (GBP/AUD) and the New Zealand Dollar (GBP/NZD) and by a far greater 1.9% against the Russian Ruble (GBP/RUB).
No domestic data is out for the Pound today, but the news that UK defence spending is to increase by 30% has boosted the value of certain defence-based stocks such as those of Rolls Royce and BAE Systems. Despite this beneficial effect, however, the Pound is unlikely to fare so well when the Autumn Statement is delivered on Wednesday. This is due to a larger spending on defence requiring a greater tightening of UK spending in other areas.
Euro Fares Strongly against Pound Sterling (EUR/GBP) and Others Today on Positive PMI Results
The Euro (EUR) has advanced considerably against many of its rivals so far today, with a 0.2% advance against the Pound Sterling (EUR/GBP) being just one of these. Other successes for the Euro have included 0.5% against the Indian Rupee (EUR/INR) and more than 0.8% against the New Zealand Dollar (EUR/NZD), the Australian Dollar (EUR/AUD) and the South African Rand (EUR/ZAR). These results are vastly superior to last week’s postings, when the Eurozone was still reeling in the wake of the Paris attacks.
The Euro has been supported this morning by mostly positive Eurozone Manufacturing, Services and Composite PMIs for November, which have included forecast-exceeding printings from Germany and the Eurozone as a whole.
GBP/EUR Exchange Rate Forecast: UK CBI Figures due Tomorrow, Eurogroup and German Data Also Imminent
The first UK economic announcement of the week will come tomorrow morning, with the release of the Confederation of British Industry (CBI) Reported Sales figure for November. At the time of writing, forecasts were optimistic with a rise from 19 to 25 on the cards.
The Euro may experience more notable movement than the Pound over the next few days given the range of news due to emerge from the Eurozone. The Eurogroup meeting is due this afternoon and tomorrow morning and the common currency is also likely to be affected by a range of German economic publications. These include the Q3 annual GDP results, which are forecast to repeat their previous results, while later on will be IFO November surveys covering views on the German Business Climate, Current Assessment and Expectations. As of writing, the first of these was predicted to stagnate, the second to decline fractionally and the third to rise by a marginal amount.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4238 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7025 today.
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