- EUR GBP trading rate drops to 0.83 – GBP EUR climbs to 1.19
- Euro demand slumps on Italian banking situation – Fate of Italy’s oldest bank hangs in the balance
- Pound rallies after slow news day – Construction crash fails to cause lasting GBP damage
The Euro’s condition against the Pound has worsened further during trading today, owing to the latest negative developments in the Eurozone.
These have centred around Italy’s oldest bank, Monte dei Paschi, which has teetered on the verge of a complete collapse.
The apparent inability or indifference of authorities to rescue this cornerstone of the Italian banking network has been deeply concerning to Euro investors, who have accordingly abandoned the EUR in favour of seemingly more stable currencies.
(Last updated December 9th, 2016)
The Pound Euro exchange rate has appreciated moderately so far today, though falling construction figures have tempered investor optimism.
Euro Exchange Rate News: EUR GBP Appeal remains Limited as Investors Process ECB QE News
The Euro Pound exchange rate has so far failed to recover fully from Thursday afternoon’s drop today.
The latest major Eurozone news has been that the European Central Bank (ECB) has adjusted its quantitative easing scheme, although not in a way that investors were expecting.
While spectators had been predicting a gradual tapering off of bond buying in the future, the value of bonds to be purchased was instead decreased while the period of QE was extended until the end of 2017.
This sent Euro demand plummeting, and a falling German trade surplus for October today has only exacerbated the issue of low Euro appeal.
GBP EUR Exchange Rate Appreciates after Surprise Slide in UK’s Trade Deficit
The Pound Euro exchange rate has risen by 0.2% so far today.
The source of this widespread optimism has been the earlier October trade balance result, which showed a deficit reduction from -5.81bn to -1.97bn. Prior to announcement, forecasts had been for a lesser move to -3.4bn.
On the more negative side, however, have been the annual construction output and orders figures for Q3 and October respectively, which have both shown a notable slowdown in the UK’s construction sector.
Future EUR GBP Forecast: Possible Recovery in Line for Euro on Irish GDP Forecasts
The last major Eurozone announcement of the week is due shortly, and will consist of Ireland’s GDP growth rate figures for Q3.
The Euro may well be able to appreciate on the news, given that a rise is forecast on both the quarter and the year.
Investors in the Pound will have to look further ahead for the next UK news; the coming Tuesday will bring the UK’s November inflation rate results, which are set to rise marginally on both the month and year.
This outcome could weaken Sterling, given that it represents another step closer to damaging inflationary pressures in the face of slow wage growth.
Current Interbank EUR GBP Exchange Rates
The Euro Pound (EUR GBP) exchange rate was trending in the region of 0.84 and the Pound Euro (GBP EUR) exchange rate was trending in the region of 1.18 at the time of writing.
