Pound Sterling to Euro (GBP/EUR) Exchange Rate Trending in a Narrow Range amid Rough Times for UK Economy
The Pound Sterling (GBP) has continued the poor performance it displayed yesterday, after the UK Trade Balance figures for June showed an expansion of the UK’s Trade Balance deficit.
If you're looking to make an international money transfer, we recommend TorFX.
Euro to Pound Sterling (EUR/GBP) Exchange Rate to remain steady after Mixed German Economic Data
The Euro (EUR) seems set to retain its slight advantage over the Pound (EUR/GBP) today, after German economic data for June painted a mixed picture of the Eurozone economy. The German monthly Industrial Trade figure showed a decrease of -1.4%, and the yearly result showed that annual growth had slowed to 0.6%. However, unlike the UK, Germany posted a positive Trade balance figure, seeing a healthy increase from 19.5bn to 24bn.
Despite this fall for the Pound Sterling (GBP) today, the Visible Trade Balance negative was less than expected, coming at -£9.1bn instead of the forecast -£9.3bn. Although the UK has no major economic data releases until Wednesday, any further Greek disruptions may damage the Euro’s performance in the pairing; this comes after news that Greek public spending fell by -12.3% in the first 6 months of 2015.
The Pound Sterling to Euro (GBP/EUR) exchange rate has risen slightly today, ahead of a major announcement from the Bank of England (BoE) Monetary Policy Committee (MPC).
BoE Minutes Hold Key to Pound Sterling’s (GBP) Performance against Major Rivals
Although the actual announcement of the UK interest rate isn’t expected to be anything unusual (all estimates see the Bank Rate remaining at 0.5% today), the contents of the MPC minutes will be closely scrutinised. Any signs that Committee members are divided on raising the UK interest rate in the future will likely trigger a wave of optimism about the Bank Rate, and see the Pound (GBP) soar against its competitors.
If this occurs, and how long the uptrend will last, however, remain unknown. UK Trade Balance figures for June are due for release tomorrow, and forecasts for all of these predict an increase in the UK trade deficit; whether this dampens any burst of optimism that happens today remains to be seen. The Pound rose by 0.2% against the Euro (GBP/EUR) today, and saw a far greater gain of 1.9% against the Russian Ruble (GBP/RUB).
The Pound Sterling to Euro (GBP/EUR) exchange rate has risen today after a highly negative analysis of Greece’s future in the Eurozone was published by the National Institute of Social of Economic and Social Research.
Pound Sterling to Euro (GBP/EUR) Exchange Rate News: Slow UK Growth doesn’t Dampen Pound’s Gains
The Pound Sterling (GBP) has risen across the board today after the UK Services and Composite PMI figures for July showed growth, albeit at a lower rate than had been forecast. It is worth remembering that UK tourism is one of the biggest contributors to the Service sector, and this figure can be expected to increase next month as the British Summer rolls on. Chris Williamson, Chief Economist at PMI compiling service Markit, was optimistic about the results and said that the service sector remained ‘the main driver’ of economic growth.
The Pound gained against the Euro (GBP/EUR), the Australian Dollar (GBP/AUD) and the US Dollar (GBP/USD) by 0.4% and saw a greater gain of 0.6% against the South African Rand (GBP/ZAR) and the Swiss Franc (GBP/CHF). The most bullish move by the Pound today was a 0.7% rise against the Thai Baht (GBP/THB) and the Israeli New Shekel (GBP/ILS).
Euro to Pound Sterling (EUR/GBP) Exchange Rate Dives after Pessimistic Forecast for Greek Future
The Euro (EUR) has fallen today, seeing a -0.3% loss against the Pound Sterling (EUR/GBP) and a -0.4% fall against the Canadian Dollar (EUR/CAD). The common currency has gained against the US Dollar by 0.3% and risen against the South African Rand by 0.4%. Elsewhere, the Euro has been trending in a narrow range.
This mixed performance comes after the NIESR published a report that said that a €100bn write off was needed to prevent Greece from sinking into a ‘prolonged and severe depression’, and that by the end of 2016, the Greek economy is forecast to be 7% smaller than when it first joined the Eurozone. The report was not favourable to Greece’s future within the Eurozone, noting that ‘As the prospects for Greece deteriorate while inside the Euro area, questions over Greece remaining a member will persist’.
Pound Sterling to Euro Exchange Rate Forecast: Current GBP/EUR Uptrend set to Continue as BoE Meeting Approaches
The Pound Sterling (GBP) seems set to hold onto its considerable gains in the near-future; the Bank of England (BoE) Monetary Policy Committee (MPC) is meeting tomorrow, and while an interest rate is not immediately expected, any signs of a future increase will likely widen the current advantageous gap between the Pound and its competitors. Adam Chester, Head of Economic Research and Market Strategy at Lloyds Bank, said that ‘Anything more than two votes for an immediate rate rise would almost certainly pull expectations of the first rate hike forward from next spring.’
The Euro (EUR) may make some slight movement against the Pound tomorrow; the German Construction and Retail Sales PMI figures for July are due out, and a higher result than expected may cause an overall rise in the Euro’s performance, despite facing continuing obstacles to its performance due to the situation in Greece.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4356 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.6968 today.