GBP to EUR Exchange Rate Boosted by Poor German Data
In general the performance of the Pound versus most of its major competitors has been particularly soft of late. One of the only currencies to have been performing worse than Sterling has been the Euro; and the situation remains unchanged.
If you're looking to make an international money transfer, we recommend TorFX.
With a lack of meaningful domestic data to provoke movement the Pound has struggled with the hangover from a poor end to last week. The initial spark to this downwards trend was the fact that retail sales growth failed to meet with expectations.
A string of below-par Eurozone domestic data results at the end of last week helped compound Sterling softness. Eurozone Composite, Manufacturing and Services PMI’s all fell below forecast levels. The close trading relationship between the UK and the Eurozone has had a detrimental effect on the Pound; particularly the negative manufacturing data.
The Euro has had little to celebrate over the past few weeks. The initial downfall was sparked by European Central Bank President Mario Draghi after he made a speech at the Jackson Hole symposium on Friday. The speech intimated towards further stimulus in order to boost the fading Euro, but a quantitative easing rhetoric has caused traders to pull away from the Euro in favour of less risky currencies.
Issues for the single currency continued to mount on Monday following a set of unimpressive German domestic data publications. German Business Climate, Current Assessment and Expectations all failed to meet with forecast figures.
Both Sterling and the Euro have suffered from the recent bullish run of the ‘Buck’ (USD). As demand for the US Dollar increased the demand for a waning Pound and a struggling Euro was minimal.
The Pound Sterling to Euro exchange rate has hit a low today of 1.2557.
With nothing by way of domestic data to provoke change on Wednesday, the Pound’s movement can be attributed to several factors; namely the movement of other currencies.
The current situation surrounding the Scottish Referendum has not improved matters for Sterling. As the debate continues to provide more questions than it does answers, demand for the Pound has diminished.
Wednesday has been, yet again, disappointing for the Euro and the German economy. The year-on-year German Import Price Index was forecast to have retracted by -1.4% having shown a retraction of -1.2% previously. The actual result revealed a retraction of -1.7% having had a deficit of -0.4% in July.
German Consumer Confidence was also less-than-desirable printing at 8.6 having been forecast to maintain the previous figure of 8.9.
With several European domestic data publications due for release on Thursday, those invested in the single currency will be hoping for some much needed positivity.
The Pound Sterling to Euro exchange rate has reached a high today of 1.2593.