British Pound (GBP) Exchange Rate Forecast: Sterling could push higher against the Euro
The British Pound to Euro exchange rate firmed on Thursday and touched a one-week high before settling into a mixed pattern.
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Sterling advanced earlier in the session after a report released by the Confederation of British industry came in above forecasts.
According to the CBI survey, the total order book balance increased to +6 in March, up from the +3 seen in February and beat the +5 forecast by economists. Putting a slight dampener on the report was the news that exports slipped this month with the export order book falling to -10 from -1, the fall in exports highlights the challenges faced by UK manufacturers.
The Euro, was weakened earlier in the session after a economic data showed Producer Price Inflation (PPI) stagnated in February. According to the report published by German stats office Destatis, the overall producer price index stayed unchanged on a monthly basis but fell sharply by 0.9% on a year by year basis.
Adding to the Euro’s woes wast the release of a separate report which showed that the jobless rate climbed unexpectedly in the Netherlands last month. According to the data, the unemployment rate edged higher to 8.8% from 8.6%.
Further putting pressure onto the single currency was comments by US President Barrack Obama who warned Russia that it further escalated the situation in Ukraine then the US and its allies will impose further sanctions. Obama warned that new sanctions will harm the Russian economy and could have a knock on impact to the wider global one.
Against the US Dollar the British Pound weakened after a report showed that the number of Americans filing for jobless benefits held near the lowest level in almost four months last week.