GBP/EUR Exchange Rate Softens on German Unemployment Change
Monday’s British data was reasonably disappointing and Sterling has lost a little ground against the majority of its most traded currency peers as a result. Conversely, European data on Monday has been much better than that of recent weeks, with particular reference to German publications, and the Euro has strengthened a little in response.
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The Pound Sterling to Euro exchange rate is currently trending in the region of 1.2778.
The Pound started Monday’s session in a strong position having had a positive week preceding. The Unionist victory in the Scottish independence referendum provoked a surge in demand for Sterling which appreciated against all sixteen of its major peers. Further Sterling success came in the aftermath of a hawkish speech from Bank of England Governor Mark Carney, in which he suggested that nearly all of the prerequisites for normalising monetary policy have been met.
Those invested in the Euro would have been frustrated with the single currency’s performance last week. The Euro declined against all of its rivals after European Central Bank President Marion Draghi said that he was unafraid of doing whatever he could to bolster the stagnating Eurozone economy.
The Pound Sterling to Euro exchange rate has hit a low today of 1.2768.
British economic data on Monday has been relatively disappointing. The BoE Consumer Credit was expected to fall from £1.108 billion to £0.85 billion, but the actual data saw a decline to £0.898 billion. Mortgage Lending was forecast to dip from £2.34 billion to £2.3 billion, but the actual data dropped to £2.28 billion. Mortgage Approvals defied the market consensus of jump from 66, 100 to 69, 000 with the actual result plummeting to 64, 210.
The majority of the European data releases on Monday have been positive. In particular, after a succession of increasingly bad results, the German data has impressed. The EU-Harmonised German Consumer Price Index equalled the previous figure of 0.8% despite the median market forecast of a drop to 0.7%.
Forecast for the Pound to Euro Exchange Rate
With several influential data publications over the course of the week expect volatility for the Pound to Euro exchange rate. Those invested in Sterling will want to pay close attention to the Consumer Confidence Survey due for publication later on Monday evening, Tuesday’s second-quarter GDP, Thursday’s Construction PMI and Friday’s Composite and Services PMI’s.
Euro traders will want to concentrate on Tuesday’s German Unemployment Rate, German Unemployment Change and the Eurozone Consumer Price Index.
The most important data publication for the single currency will be Thursday’s ECB Bank Rate Decision. Although it is incredibly unlikely that there will be a revision to the rate, there is the possibility of an introduction of yet more stimuli in order to counteract Eurozone stagnation.
The Pound Sterling to Euro exchange rate has reached a high today of 1.2813.
The Pound Sterling to Euro exchange rate is currently trending in the region of 1.2823.
Despite unimpressive British house price data the Pound has gained on the Euro on Tuesday. This is because economic data from the currency bloc’s largest economy has been particularly disappointing. The German Unemployment Rate maintained the previous figure of 6.7%, but Unemployment Change was particularly poor. Having been predicted to contract by -2,000 the actual data showed 12, 000 newly unemployed.