The Euro to Pound Sterling (EUR/GBP) exchange rate has declined slightly today, with the single currency (EUR) shedding some of yesterday’s gain. This has mainly come from today’s German Confidence scores failing to offer unanimous Euro support, along with the continuing threat of further quantitative easing hanging over the common currency’s performance.
EUR/GBP Exchange Rate News: German Economic Uncertainty offers Mixed Blessings for Euro Today
The Euro (EUR) has fallen slightly against the Pound Sterling (EUR/GBP) today; elsewhere, the common currency has trended in a narrow range against most of its rivals. Exceptions include a 0.3% rise against the South African Rand (EUR/ZAR) and a 0.6% advance against the Australian Dollar (EUR/AUD).
Offering a repeat of yesterday’s mixed PMI results for the Eurozone, today’s main Euro-centric data has also failed to trigger either a major decline or a rally. The German GFK Consumer Confidence Survey posted a drop from 9.9 points to 9.6 points, while the IFO Business Climate Expectation for September rose unexpectedly from 108.4 to 108.5. However, the IFO Current Assessment fell be more-than-forecast, posting 114, while the IFO Expectations bucked expectations by coming in at 103.3 from 102.2 instead of falling as predicted. In addition, any major support for the Euro has been held back by an ambiguous stance from the European Central Bank (ECB) over whether further quantitative easing will be used to stimulate the European economies.
Osborne Opens Bidding on HS2 from China, though UK Loans Data Shortfall holds back Sterling
The Pound Sterling (GBP) has seen marginal gains against the Euro (GBP/EUR) today, although like the Euro, the Pound has, for the most part, trended narrowly against the competition. Outside of these stable results, rises of over 0.5% have been seen against the South African Rand (GBP/ZAR), the Australian Dollar (GBP/AUD) and the Turkish Lira (GBP/TRY). Sterling’s best showing today has been by 2% against the Norwegian Krone (GBP/NOK).
Although the only UK data of the day (the BBA Loans for House Purchases in August) has fallen short of the 47000 figure predicted, the number of loans has still increased over the previous posting. Elsewhere in UK news, Chancellor George Osborne has opened up bidding from Chinese investors on the High Speed 2 (HS2) rail line, despite the fact that Parliament has yet to officially approve the scheme itself.
Exchange Rate Forecast: No Major Change Predicted for EUR/GBP Exchange Rate ahead of Weekend
Today has been the last day of significant data for the UK and the Eurozone before the weekend; although tomorrow brings the release of the French Consumer Confidence score for September and the Spanish annual PPI for August, as well as the German Import Price Indices, these results are considered low-volatility and therefore the current EUR/GBP exchange rate is not expected to rise or fall by any significant margins.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7337 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3630 today.
