The Euro to Pound Sterling (EUR/GBP) exchange rate is trending within a tight range on Friday morning.
British Consumer Confidence data bettered estimates, causing the Pound to appreciate versus many of its major peers. Having been forecast to rise from -4 to -2, the actual result jumped to 1. This is likely to be a result of cheap oil acting like a tax cut.
The Euro, meanwhile, strengthened after German Retail Sales eclipsed the median market forecast of a rise from -1.0% to 3.6%, with the actual result reaching 4.0%.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trending in the region of 0.7526.
Yesterday…
The Euro to Pound Sterling (EUR/GBP) exchange rate strengthened by around 0.20% on Thursday morning.
After German unemployment data printed positively, the common currency advanced against many of its major peers. However, with the German inflation data expected to decline, the gains have been fractional and laboured.
The Pound Sterling, meanwhile, is generally trending lower against most of its major rivals on Thursday. This can be attributed to disappointing domestic data which showed house prices cooled in January.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trending in the region of 0.7462.
Euro (EUR) Exchange Rate Gains on German Unemployment
German labour market data printed positively on Thursday, allowing the shared currency to edge higher versus many of its currency competitors. Seasonally adjusted Unemployment Rate dropped from 6.6% to 6.5% in January. In addition, German Unemployment Change saw 9,000 fewer people without work.
However, the Euro gains have been sluggish as traders await the German Consumer Price Index data. With low oil prices causing deflationary pressure in many major economies, most experts forecast German inflation to decline into negative territory.
The Euro to Pound Sterling (EUR/GBP) exchange rate dropped to a low today of 0.7439.
Pound Sterling (GBP) Exchange Rate Edges Lower on UK House Prices
After domestic data showed house prices fell in January, the Pound softened versus many of its currency rivals. Nationwide House Prices dropped from 7.2% to 6.8% on a yearly basis, although monthly house prices increased from 0.2% to 0.3%.
‘The further moderation in the pace of price growth is unsurprising, given the slowdown in housing market activity in recent months,’ said Nationwide’s chief economist, Robert Gardner who was unsure about the exact reason behind the slowdown.
Euro to Pound Sterling (EUR/GBP) Exchange Rate Forecast to Fluctuate
With the German inflation data ahead, and with UK reported sales data, the Pound Sterling to Euro (GBP/EUR) exchange rate is likely to fluctuate. If the German CPI does decline, the Pound is likely to recover losses against the shared currency.
The Euro to Pound Sterling (EUR/GBP) exchange rate climbed to a high today of 0.7480.
