The Pound Sterling (GBP) has slipped by a narrow margin against the Euro (GBP/EUR) today, following from a beneficial German Unemployment posting and a decline in the UK CBI Reported Sales for October. In addition to this, Germany’s recent CPIs have printed favourably against some expectations.
UK Confidence to Open Tomorrow’s GBP/EUR Exchange Rate Movement
The Pound’s next piece of data will come early tomorrow with the Gfk Consumer Confidence Survey for October, which has been forecast to rise marginally from 3 points to 4.
Later on, the more high-impact Eurozone CPI and Unemployment Rate results are due.
Earlier…
The Pound Sterling (GBP) has declined by -0.4% against the Euro (GBP/EUR) today, elsewhere the Pound has seen notable rises and falls in equal measure.
EC Forecasts and German Unemployment to Dominate Tomorrow’s GBP/EUR Movement
The next pieces of data that are likely to trigger discernible movement in the pairing are tomorrow’s UK annual October Nationwide House Prices and Mortgage Applications in September, although the Eurozone information due is considered to be more high-impact. This includes the European Commission Economic Forecasts and the German Unemployment Rate and Change for October; no change from 6.4% is expected for the rate per se, but an optimistic -4k person decrease has been forecast for the Change figure.
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate has declined marginally today, while elsewhere the Pound (GBP) has recovered from a highly disappointing Q3 GDP result.
Exchange Rate News: GBP/EUR Pairing Harmed by Today’s GDP Decline
The Pound Sterling (GBP) has trended narrowly in a negative range against the Euro (GBP/EUR) today. Although today’s biggest UK news, the Q3 GDP announcement, initially sent the Pound on a large downtrend, it has since recovered from the worst of its losses. Since the news, the Pound has been seeing advances of 0.2% against the Turkish Lira (GBP/TRY), 0.4% against the South African Rand (GBP/ZAR), 0.8% against the Norwegian Krone (GBP/NOK) and 1.4% against the Russian Ruble (GBP/RUB); this has been met on the other side by a -0.6% decline against the Japanese Yen (GBP/JPY).
The quarterly GDP result saw a drop from 0.7% to 0.5%, while the annual figure fell from 2.4% to 2.3%. The worst performing sector was Construction which fell by -2.2%, while Services came out as the clear leader by rising by 0.7%.
Lending Growth Slowdown Hinders Euro’s (EUR) Prospects Today
The Euro (EUR) has made small gains against its rivals today, although the relevant economic publications have not exactly been supportive of the current uptrends being seen by the single currency. Gains have been made up of a narrow trending against the Pound Sterling (EUR/GBP), a rise of over 0.2% against the Swiss Franc (EUR/CHF) and the Canadian Dollar (EUR/CAD) and a 0.5% rise against the South African Rand (EUR/ZAR). The most notable loss for the Euro has been by -0.5% against the Japanese Yen (EUR/JPY).
The day’s Eurozone results have mainly been made up of a shortfall in the September Monetary Supply, a fractional growth from 1% to 1.1% for September Loan Growth and a monthly decline in Lithuanian Retail Sales of -7.3%.
GBP/EUR Exchange Rate Forecast: Pessimistic Eurozone Results due ahead of UK Mortgage Figures
The UK has no economic releases left today and nothing due for release tomorrow, therefore the next movement in the GBP/EUR pairing will come from tomorrow’s German data. Fortunately for investors in Sterling, at the time of writing only declines had been forecast for the German Gfk Consumer Confidence Survey and the German Import Price Indices.
A day later on Thursday, the UK will again have input with the release of the Nationwide House Prices for October and the September Net Consumer Credit and Mortgage Approvals results. Also out around that time will be Germany’s Unemployment results, which have been predicted to fall by -4k persons.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3866 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7213 today.
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