GBP/EUR Exchange Rate Pares Advance
After climbing above the 1.34 level on Wednesday, the GBP/EUR pairing shed around 0.6% ahead of the Bank of England’s (BoE) interest rate decision.
The central bank is expected to take no action this month.
Demand for the Euro had been seriously undermined by the European Central Bank’s decision to shut off direct funds to Greece (which was taken as a sign that the central bank intends to make the nation stand by its debt obligations) but a surprisingly strong Factory Orders report for Germany lent the common currency support.
The Pound Sterling to Euro (GBP/EUR) exchange rate is trading in the region of 1.3322
Earlier…
Pound Sterling to Euro (GBP/EUR) Exchange Rate Boosted by UK Data
The UK’s Services PMI rounded off a hat-trick of positive results on Wednesday by coming in well above the expected level of 56.3.
The 56.2 reading was well received by investors as it indicates that the UK economy got off to a strong start to the year.
After the data was released, the Pound gained on several of its counterparts and the Pound Sterling to Euro (GBP/EUR) exchange rate advanced by over 0.8% – taking the pairing back up above the 1.33 level.
Although the Eurozone released fairly sturdy retail sales data for December, the common currency remained trending in a weaker position ahead of tomorrow’s Bank of England (BoE) interest rate decision and the release of German factory orders figures.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3319.
Earlier…
Pound Sterling to Euro Exchange Rate Gains Prove Slippery
The Pound Sterling to Euro (GBP/EUR) exchange rate failed to hold on to its advance as the European session continued and the pairing went on to slide by around 0.4%.
It will take an impressive UK services report for the Pound to enjoy a prolonged run of gains tomorrow.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trading in the region of 1.3195 – below the 1.32 level.
Earlier…
GBP/EUR Exchange Rate Could Rally on Services Data
Eventually, the Pound Sterling to Euro (GBP/EUR) exchange rate posted a modest gain in reaction to the UK’s upbeat construction report.
The slight GBP/EUR uptrend was also the result of the Eurozone’s Producer Price Index coming in below expected levels.
Producer prices in the currency bloc fell by -1.0% on the month in December and were down -2.7% on the year.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3277
Further Sterling gains could occur tomorrow if the UK’s Services PMI also surprises to the upside.
Earlier…
GBP/EUR Exchange Rate Could Gain on Construction Stats
The Pound Sterling to Euro (GBP/EUR) exchange rate continued trending in a narrow range following the release of the UK’s Construction PMI.
The index surprised economists by printing at 59.1 in January.
A more moderate reading of 57.0 had been anticipated.
The data saw Markit economist Tim Moore observe; ‘UK construction companies have found their feet again after a protracted slowdown in output growth at the end of 2014. Stronger trends were recorded across housing, commercial and civil engineering, although each category of activity still experienced much slower growth than the high-water marks achieved last year. In short, the peak speed of the construction recovery seems to be over, but reports of its death have been greatly exaggerated.’
However, while the result was positive, the Pound’s gains were limited.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3248
The Pound could gain on the Euro if the Eurozone’s Producer Price Index comes in at or below forecast levels.
The Pound Sterling to Euro (GBP/EUR) exchange rate may advance in the hours ahead if the UK’s Construction PMI surprises to the upside, as yesterday’s manufacturing report did.
GBP/EUR Exchange Rate Drops -0.8%
On Monday the Pound Sterling to Euro (GBP/EUR) exchange rate shed -0.8% on the day’s opening levels.
Sterling failed to hold its own against the Euro in spite of the UK’s Manufacturing PMI report coming in above expected levels.
The gauge of manufacturing advanced to 53.0 from 52.5, surpassing forecasts for a reading of 52.7.
While the report was generally fairly cheery in tone, any Pound gains were stymied by bets that positive UK data won’t be enough to bring forward Bank of England (BoE) interest rate hikes in the face of inflationary concerns.
The Pound Sterling to Euro (GBP/EUR) exchange rate achieved a high of 1.3268
The Euro, on the other hand, managed to advance on the Pound and US Dollar as rumours of the Swiss National Bank (SNB) implementing an unofficial Euro cap lent the common currency support.
An article published in Swiss newspaper Schweiz intimated that the SNB is intervening in the currency market and aiming for a EUR/CHF exchange rate of 1.05 – 1.10.
At the time one FX strategist noted; ‘It is chatter that there is an informal band and the sight deposits data suggests that the SNB is there in the market. The SNB is trying to smooth the flows and the volatility. Also, we are seeing that our clients are staying away from [the Franc] because of all the volatility.’
The Pound Sterling to Euro (GBP/EUR) exchange rate brushed a low of 1.3228
Even sub-par manufacturing figures for the Eurozone weren’t enough to drive the Euro lower.
The Euro did experience modest fluctuations in response to inflation-related comments issued by European Central Bank (ECB) policymaker Ewald Nowotny.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast
Later today the Pound could edge higher against the Euro if the UK’s Construction PMI also shows improvement.
The measure is forecast to soften from 57.6 to 57.0 in January, so a gain would be a welcome surprise.
The Pound Sterling to Euro (GBP/EUR) exchange rate could also fluctuate in response to the Eurozone’s Producer Price Index.
The region’s PPI is believed to have fallen by -0.7% on the month in December following a -0.3% decline in November.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trading in the region of 1.3257
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trading in the region of 0.7538
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5021
The US Dollar to Pound Sterling (USD/GBP) exchange rate is trading in the region of 0.6657