Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast: Sterling Rallies despite Pessimistic GDP Results
The Pound Sterling to Euro (GBP/EUR) exchange rate has risen considerably today, despite the only UK data not matching up with forecasts.
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GBP/EUR Exchange Rate News: Lack of Trading Means ‘Bad News’ is Good News for Sterling
Pound Sterling (GBP) has rallied across the board today amid thin trading conditions. The UK Q3 GDP figures have disappointed investors on both the month and the year, falling from 0.5% to 0.4% and from 2.3% to 2.1% respectively. While this result would typically result in the Pound declining in value against its peers, it has caught a break today due to the period before and after Christmas creating a thin market, where trading is reduced and the volatility of economic publications is increased.
Essentially, because the GDP figures have remained positive and not fallen by massive amounts, investors have been more supportive of Sterling than might first be thought. Rises have been seen of 0.6% against the Israeli New Shekel (GBP/ILS), 0.9% against the Polish Zloty (GBP/PLN), 1% against the Euro (GBP/EUR) and 1.2% against the Hungarian Forint (GBP/HUF). This is a far superior result to the Pound’s starting performance this week.
Euro (EUR) in the Doghouse as French GDP Results fail to Copy Effect of UK Figures
The Euro (EUR) has been in a solid downtrend for most of the day today, having been put in this state by France’s Q3 GDP figures thoroughly disappointing investors. The quarterly result stagnated at 0.3%, but the annual variant has dropped from 1.2% to 1.1% unexpectedly.
The Euro has fallen by -0.5% against the Australian Dollar (EUR/AUD) and -1% against the Canadian Dollar (EUR/CAD) and Pound Sterling (EUR/GBP) today.
GBP/EUR Exchange Rate Forecast: Minor Movement Predicted ahead of Last UK Data before Christmas
Pound Sterling (GBP) will have a last bit of input to the GBP/EUR exchange rate tomorrow ahead of Christmas Day as a result of the last piece of UK data out this week. The BBA Loans for House Purchases in November were expected to increase at the time of writing, moving up from 45437 to 46000.
The only data from the Eurozone to be aware of is Belgium’s Industrial Production results for October. At the time of writing, forecasts were for an improvement in both categories, with movement from -1.4% to -0.61% on the year and -0.05% to 0.12% on the month. Additionally, French Unemployment Benefit Claims for November will also be released. Forecasts have been optimistic, with a hefty reduction from 42k to 5k on the cards.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3666 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7318 today.