Pound Sterling to Euro (GBP/EUR) Exchange Rate Buoyed by Positive Data
Those invested in the Pound Sterling have had little to celebrate over the course of the week as the bearish behaviour, which was triggered from the tail end of last week, has had little by way of domestic data to curtail the down-trend.
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Friday’s data has seen a reversal in fortune for the Pound as a succession of positive results rallied Sterling against the majority of its peers.
Similar to that of the Pound; those invested in the Euro will be happy to see the back of this week as the single currency has been out performed across the board.
The issues for the Euro were ignited last Friday when European Central Bank President Mario Draghi gave a speech in the Jackson Hole symposium. The speech outlined Draghi’s intention to introduce further stimulus in order to bolster the European economic standing. A quantitative easing rhetoric was enough to see investors pulling away from the Euro, favouring less risky currencies.
Throughout the course of the week European domestic data publications have left a lot to be desired; particularly German data. Monday’s German Business Climate, Current Assessment and Expectations data all failed to meet with expectations.
Wednesday’s German Import Price Index data also failed to meet forecast figures, and similarly the German Consumer Confidence Survey didn’t meet with the anticipated figure.
Thursday revealed yet more issues from German domestic data publications. German Unemployment Rate met with the forecast figure of 6.7%, but German Unemployment Change saw an unwanted addition of 2,000 newly unemployed.
The past week has been difficult for those backing Sterling as there were minimal domestic data publications to curtail the downtrend experienced at the close of the previous week.
Problems for Sterling mounted with a succession of less-than-ideal Eurozone domestic data publications. The trading relationship between the Eurozone and the UK means that domestic data results can either be mutually beneficial, or indeed mutually detrimental.
Traders have also been reluctant to invest in the Pound amidst the ongoing debate surrounding the Scottish bid for independence. As the debate continues to produce more questions than answers the risk attached to Sterling investment is too hot for some.
The Pound Sterling to Euro exchange rate has hit a low today of 1.2574.
Friday has seen a reversal in fortune for the Pound. The year-on-year Nationwide House Px rose above the forecast figure of 10.2%, printing at 11.0% having grown by 0.8% in August. Also the GfK Consumer Confidence Survey outshone expectations printing a surplus figure of 1 despite having been forecast to retract by -1.
European economic data has been a mix-bag on Friday. German Retail Sales failed to meet with the forecast figure, printing at 0.7% having declined by -1.4% in July.
The Italian Unemployment Rate showed an unwanted growth of 12.6%, but the Italian Gross Domestic Product Data showed a retraction of -0.2% having been forecast to retract by -0.3%.
The Eurozone Unemployment Rate met with the forecast figure of 11.5% which was consistent with the previous figure. The Eurozone Consumer Price Index Estimate stayed faithful to the forecast figure of 0.3%, and the Core Consumer Price Index exceeded expectations printing at 0.9%.
The positive Eurozone data is also likely to boost Sterling over the course of the day as traders digest the numbers.
The Pound Sterling to Euro exchange rate has hit a high today of 1.2606.