The Pound Sterling to Euro (GBP/EUR) exchange rate has fallen by -0.2% today as the Euro (EUR) has strengthened in some areas following a successful third Greek bailout agreement last night.
Sterling may recover if UK Retail Sales Figures live up to Expectations
The Pound Sterling (GBP) has seen a minor drop against the Euro (GBP/EUR) today; the common currency (EUR) has risen by over 0.7% against the South African Rand (EUR/ZAR) and the Australian Dollar (EUR/AUD).
This confidence in the Euro comes from a successful agreement being reached by the European Stability Mechanism (ESM) last night. The ESM has already sent €13bn to Greece, so that the Hellenic parliament can repay its most pressing €3.5bn debt to the European Central Bank (ECB) today.
Despite this apparent stability for the Euro, the Pound may still reclaim an advantage if the impending UK monthly and yearly Retail Sales figures for July show their predicted increases, which will indicate a recovery in the UK economy.
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate has fallen by -0.4% today, as the Greek bailout deal finally approaches a closing point tonight.
Strong Euro-Confidence is Apparent despite Dutch Upset along the Way
The Euro (EUR) has risen against all but the rallying Swiss Franc (EUR/CHF) today. This comes after the German parliament approved the Greek bailout scheme earlier today, leaving only the approval of the European Stability Mechanism as the final hurdle. Given that all voting European parliaments have approved of the plan, it seems a given that the consensus will be positive, although even at this eleventh hour, nothing is guaranteed.
Despite not having to vote in proceedings, the Dutch parliament has been holding debates today over the actions of Prime Minister Mark Rutte in supporting what (for some Dutch MPs) has been a deeply unpopular measure. Geert Wilders, a former member of Rutte’s party, colourfully described Greece as a ‘lying…junkie’ whose false promises Rutte had continually believed.
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate has been at a stalemate today as the Greek bailout package approaches its conclusion tonight.
GBP/EUR Flops as UK CPI High Dissipates Overnight
The Pound Sterling (GBP) has trended narrowly against the Euro (GBP/EUR) today as the unexpected upsurge seen by the Pound yesterday wore off this morning. The bullish uptrend was triggered by a 0.1% rise in the UK inflation rate for July, as speculators linked the event to an increased possibility of a UK interest rate hike in the near future. Today’s less-than-inspiring performance can be attributed to a more reasonable reaction to yesterday’s news – while the UK CPI increase did appear to make a UK rate hike more likely, it was by no means an assurance and despite Bank of England (BoE) Monetary Policy Committee (MPC) member David Miles predicting that the UK bank rate will rise ‘pretty soon’, speculators do not appear to be convinced.
The Pound has risen by 0.4% against the Turkish Lira (GBP/TRY) and by 0.6% against the Israeli New Shekel (GBP/ILS) today, but has fallen by over -0.3% against the Swiss Franc (GBP/CHF) and the Indian Rupee (GBP/INR).
EUR/GBP Uptrend Predicted if German Vote Shows Solid Approval
The Euro to Pound Sterling (EUR/GBP) exchange rate has trended in a narrow range today, although unlike the Pound (GBP), this underwhelming performance doesn’t seem set to last. German MPs are currently voting to approve or reject the third Greek bailout package and unrest has been predicted within the Bundestag. Despite this, however, forecasts are for German approval, with German Chancellor Angela Merkel’s support of the measure being a deciding factor. A mock vote on Tuesday saw 60 against or abstention votes, but this is far below the required number for a rejection to take place.
The Euro (EUR) has fallen by over -0.3% against the Swiss Franc (EUR/CHF) and the Indian Rupee (EUR/INR) today, and has trended in a narrow range elsewhere.
Euro Forecast to take Advantage in EUR/GBP Pairing unless Vote falls through
In a virtual reversal of events yesterday, the Pound Sterling (GBP) is unlikely to improve against the Euro (GBP/EUR) today, as no UK data releases are due for the rest of the trading session. The Euro (EUR), however, is predicted to receive a boost in its performance if the bailout package is approved, although after surviving the Bundestag, the document faces a final hurdle tonight in the form of the European Stability Mechanism’s approval. However, if German approval is obtained, this last legislative barrier may equate to a mere formality in the proceedings.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4203 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7043 today.