The Euro to Pound Sterling (EUR/GBP) exchange rate has risen today as a return to order in the world stock markets sent the common currency (EUR) up across the board.
German CPI Stagnation may Undo Euro’s Gains against Sterling
The Euro’s (EUR) rise of 0.6% against the Pound Sterling (EUR/GBP) today is a sign of clear market stability as the single currency has resumed the uptrend that it began at the end of last week. The strength of returning Eurozone confidence is evident in the common currency’s rise against the Pound (GBP); despite the UK Q2 GDP figures meeting with expectations earlier, the Pound was unable to make any headway against the Euro (GBP/EUR).
The Euro may lose out later on, however, as the German CPIs for August are due in and forecasts have not exactly been optimistic for the results.
Earlier…
The downtrend pattern exhibited by the Euro to Pound Sterling (EUR/GBP) exchange rate has continued today as global stock markets begin their slow recovery from three days of turmoil.
EUR/GBP Exchange Rate News: Sidelined Greek Issues remain Detractor of Eurozone Confidence
The Euro (EUR) has declined across the board today, a continuation of yesterday’s poor performance for the common currency. Among the worst of its losses, the Euro has fallen by over -0.5% against the Pound Sterling (EUR/GBP), the Indian Rupee (EUR/INR) and the Australian Dollar (EUR/AUD). Greater still were the falls against the New Zealand Dollar (EUR/NZD), the South African Rand (EUR/ZAR) and the Canadian Dollar (EUR/CAD), all coming in above -0.7%.
The Euro’s losses today are a feedback loop of the decline it has seen for the past two days after initially soaring at the height of the market meltdown on Monday. Although this week’s headlines have relegated the Greek situation to something of a sideshow, it will remain a pressing issue after the stock markets eventually stabilise. The mandate for creating a majority government recently passed to Panayiotis Lafazanis, leader of the newly-formed Popular Unity party, but as Lafazanis is not expected to be willing or capable of forming a coalition government, it seems increasingly likely that the second Greek election of 2015 will be taking place towards the end of September.
Until then, it remains to be seen whether the caretaker government will be copacetic with implementing bailout reforms, given that at least one of the Greek parties in the running is set on rejecting the bailout should it gain the majority.
Pound Sterling resumes Control as House Prices Record Healthy Increase
The Pound Sterling (GBP) has risen by 0.4% against the Euro (GBP/EUR) today, and has elsewhere seen gains of over 0.4% against the Czech Koruna (GBP/CZK) and the Danish Krone (GBP/DKK). Losses for Sterling include a -0.5% drop against the Canadian Dollar (GBP/CAD), a fall of -0.6% against the Turkish Lira (GBP/TRY) and a -2.1% decline against the Russian Ruble (GBP/RUB).
The Pound’s performance was helped today by a rise in the UK annual Nationwide House Price Index for August, which showed a 3.2% exceedance of the predicted 3.1% increase.
EUR/GBP Exchange Rate Forecast: Equal Footing Expected on Friday if Markets Right Themselves Today
The Euro (EUR) may yet rise against the Pound Sterling (EUR/GBP) tomorrow if the German CPIs for August come through against their current pessimistic predictions. However, the UK Q2 GDP figures are also due out tomorrow and given that 2.6% growth is predicted, simply meeting this figure may keep the Pound (GBP) in a strong position against the Euro into the weekend.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7294 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3717 today.