The Pound Sterling (GBP) has risen by 0.3% against the Euro (GBP/EUR) today, although this current advantage may be short-lived.
UK Manufacturing PMI Forecasts have Sterling Decline in Store
The Euro (EUR) has been harmed by its major data releases today – the Italian and German Manufacturing PMIs for September both dropped below forecasts, adding to yesterday’s negative Eurozone news to trigger fears over further European Central Bank (ECB) quantitative easing.
In the near-future, the GBP/EUR exchange rate may be undone by the UK Markit Manufacturing PMI for September, as a decline has currently been predicted for the result.
Earlier…
The Pound Sterling (GBP) has risen by 0.5% against the Euro (GBP/EUR) today. Given that all major UK and Eurozone releases have come out already, it seems unlikely that this favourable position will shift in the near-future.
PMIs to be Order of the Day Tomorrow for GBP and EUR
The day’s biggest news for the pairing, the Eurozone CPIs for September and the Eurozone Unemployment Rate for August, has come out in the negative against the common currency (EUR). Unemployment remained at 11% instead of dropping to the predicted 10.9%, and the base inflation rate for the Eurozone dropped into the negative, hitting -0.1%.
Tomorrow brings PMIs for both Eurozone nations and the UK, therefore the fight for leadership in the pairing is by no means over at the end of the week approaches.
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate has trended narrowly today; elsewhere, both currencies have fared poorly thanks to ongoing investigations into vital institutions.
GBP/EUR Exchange Rate News: BoE Investigated for Fraud Allegations, GBP Dives Appropriately
The Pound Sterling (GBP) has trended narrowly against the Euro (GBP/EUR) and seen major declines against many rivals today, as news comes that the Serious Fraud Office (SFO) is investigating the Bank of England (among other like organisations) for suspicions of manipulating the emergency auctions that took place at the beginning of the financial crisis. Naturally, such an investigation into a central bank has panicked speculators, and the Pound has dropped in value accordingly.
Notable losses include -0.7% against the Norwegian Krone (GBP/NOK) and the Swedish Krona (G BP/SEK), falls of -0.8% against the South African Rand (GBP/ZAR) and a dive of -1.1% against the New Zealand Dollar (GBP/NZD). The only major rises for Sterling have been by 0.2% against the Russian Ruble (GBP/RUB) and the Romanian Leu (GBP/RON).
Euro Loses Out as VW Scandal Spreads across Europe
The Euro (EUR) has trended in a narrow range against the Pound (EUR/GBP) today and as with the Pound (GBP), large losses have been recorded outside of the pairing. The most significant of these have been by -0.4% against the Australian Dollar (EUR/AUD) and the Swiss Franc (EUR/CHF) and by over -0.9% against the South African Rand (EUR/ZAR) and the New Zealand Dollar (EUR/NZD).
The Volkswagen emissions scandal continues to scare away investors in the common currency; the latest news is that VW will be issuing a recall to a collective 11 million owners of VWs, Audis, Skodas, Seats and light commercial vehicles. As this plan is ongoing, VW’s former-Chief Executive Martin Winterkorn will go under investigation from German persecutors and Sweden is rumoured to be planning its own investigation to VW vehicles sold and operating within the country.
GBP/EUR Exchange Rate Forecast: German Data to Take the Fore Once Again Tomorrow
The Pound (GBP) has a number of relevant releases due out tomorrow, but for the most part, the Eurozone will take the spotlight for a second day in a row with the high-impact German Unemployment Change and Rate for September, along with the Eurozone CPIs for the same month. No change has been predicted for the German Unemployment Rate, but as a -5k person reduction in the number of unemployed is on the cards, this may just support the German economy in a time when the future of its automobile industry remains in a state of uncertainty. Ahead of this, however, a speech by BoE Governor Mark Carney is planned this evening, and any particularly positive sentiments for the UK economy can only serve to assist the ailing Pound.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3497 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7410 today.
