The Euro to Pound Sterling (EUR/GBP) exchange rate has crashed again today as the common currency (EUR) remains down across the board.
Predicted Rise in US GDP could Further Diminish EUR/GBP Pairing
The Euro (EUR) has fallen by -0.3% against the Pound Sterling (EUR/GBP) today and has seen no gains elsewhere; the best result has been some narrow trending against the Japanese Yen (EUR/JPY), but even this has been in the negative.
It remains to be seen if the Euro will be able to make any form of recovery this week; the next major Eurozone data release is tomorrow, comprised of the German CPIs for August. Forecasts have not been positive and if ‘Greenback’ (USD) confidence has restored to anything resembling its usual level, the predicted rise in the US Q2 GDP results will also further the single currency’s current downward spiral.
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate has remained unchanged since yesterday at an advantage of 0.5%.
Returning Confidence in US result may further Sterling’s Current Gains
The Pound Sterling (GBP) has retained its advantage against the Euro (GBP/EUR) today and based on upcoming data releases may further its current uptrend against the common currency (EUR).
These results are a batch of US releases, the most important of which is the US Durable Goods Orders figure for July. Forecasts have been for a -0.4% drop in orders, therefore any major increase into a positive number will likely send confidence in the ‘Greenback’ (USD) soaring. It is worth bearing in mind, however, that despite highly positive results for the US economy yesterday, little change occurred in the performance of the ‘Buck’, so even with signs of growth, the US results may not provide enough impetus for a greater GBP/EUR rally.
Earlier…
The Euro to Pound Sterling (EUR/GBP) exchange rate has declined today, mainly due to a general improvement in the world stock markets.
EUR/GBP Exchange Rate News: Looming Second 2015 Greek Election may have dampened Eurozone Appetites
The Euro (EUR) has reversed its spectacular performance from yesterday and is now in a decline against most of its rivals. The common currency dropped by -0.5% against the Pound Sterling (EUR/GBP) today and saw greater losses of -0.8% against the Canadian Dollar (EUR/CAD), -1.1% against the South African Rand (EUR/ZAR) and -1.6% against the Indian Rupee (EUR/INR). In terms of gains, the single currency has risen by 0.2% against the Japanese Yen (EUR/JPY) and by 0.4% against the Swiss Franc (EUR/CHF).
The main cause for the Euro’s losses has been a more sober reflection on the current Eurozone situation. While yesterday the Euro was pushed ever higher by the stock markets crashing around it, the removal of this factor today has left the common currency exposed to negative speculation.
Stability in the Greek parliament hasn’t improved since last Friday when the New Democracy (ND) party was given the mandate to form a new government with the opposition. The ND has since failed and the mandate has passed to the newly-formed second largest party, Popular Unity. This attempt to stave off an election is also expected to fail, so once again Greece has slipped back on the economic and political footing, remaining leaderless and unable to implement crucial bailout reforms in the meantime.
Pound Sterling rises against Euro as Relief washes over Sterling from Stable Markets
The Pound Sterling to Euro (GBP/EUR) exchange rate has risen today, less due to positive data supporting the Pound and more because of a general sense of relief that the stock markets are showing signs of recovery after yesterday’s catastrophic dives in value. By all accounts, the Pound should be falling against the Euro as the German annual Q2 GDP increased today, as did the German IFO Assessments for August.
Sterling has not entirely recovered from ‘Black Monday’ however, as while the Pound rose by over 0.8% against the Israeli New Shekel (GBP/ILS) and the Swiss Franc (GBP/CHF) today, it also fell by more than -0.9% against the Norwegian Krone (GBP/NOK), the Indian Rupee (GBP/INR) and the Russian Ruble (GBP/RUB).
EUR/GBP Exchange Rate Forecast: Pairing Status Quo may be Restored if Market Seesawing Lessens
The Euro (EUR) was expected to rise against the Pound (EUR/GBP) this morning; this hasn’t happened despite highly positive data releases, so the normal state of play may remain upside down until order is restored in the world’s stock markets. Two speeches by European Central Bank (ECB) members are due today and tomorrow in Mannheim, but even if these speakers are positive towards the Eurozone’s prospects, this may not cancel out the current uptrend the Pound (GBP) is showing in the pairing.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7308 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3684 today.