The Euro Pound exchange rate dipped on Thursday, but EUR put on a more mixed performance against other rivals.
- EUR GBP trades at 0.84 – GBP EUR rate up to 1.18
- Euro uncertainty follows manufacturing PMIs – Overall rise contrasts with German drop
- GBP stable after bank stress test – Concerns voiced about Brexit transition
- Eurozone unemployment stats imminent – Pound weakness possible on PMI score
Demand for Sterling has been high on Thursday, although forecasts for incoming data suggest this gain could be only temporary for GBP.
Euro Exchange Rate News: EUR Demand Mixed on November’s PMI
The Euro Pound exchange rate has dropped by a small amount during trading today, while elsewhere EUR has recorded a mix of small gains and losses across the board.
The latest Eurozone data has concerned manufacturing PMIs for November, which have risen for Spain and the Eurozone as a whole, but dropped for France, Germany and Greece on the month.
In other news, European Central Bank (ECB) President Mario Draghi has again called for Eurozone governments to step up financial reforms, rather than leaving everything to the increasingly stretched central bank.
Pound Sterling Euro Exchange Rate Positive despite CBI Criticism of Brexit Plans
The Pound has advanced slightly against the Euro today and risen by moderate amounts against most other peers today; the source of this optimism may have been a delayed reaction to yesterday’s Bank of England (BoE) financial stability report.
The report included a stress test of the UK’s banks, which showed that most institutions, barring Royal Bank of Scotland (RBS) were well equipped to handle a future economic crisis on the scale of the late 2000’s crash.
In less positive news, Confederation of British Industry (CBI) Director General Carolyn Fairbairn has warned that a smooth Brexit transition is needed to minimise negative impacts on the economy.
Speaking earlier on, Fairbairn said;
‘Whatever [immigration] system comes in – ease of use [is important]. Particularly in this fast, flexible, competitive world that we’re in. If it’s just going to be leaden, and heavy, and bureaucratic, we will lose out’.
Future EUR GBP Forecast: Gains Possible on Surprise Eurozone Unemployment Drop
The next major announcement for the Eurozone is due shortly – the domestic unemployment rate for October. This is set to detail the rate across the single currency bloc, though at present, a stagnation at 10% is on the cards.
For the UK, the manufacturing PMI for November is imminent. At the time of writing, forecasts were pessimistic, with expectations being for a drop in the figure from 54.3 to 53.8 points.
PMIs will continue to be in focus for the UK on Friday, when the November construction PMI is conversely predicted to rise on the month.
Current Interbank 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 today.