The Pound Sterling to Euro (GBP/EUR) exchange rate has been positive today, although the Pound’s gains have been limited by disappointing UK news.
GBP/EUR Exchange Rate News: Low Demand for UK Production Caused Historic Manufacturing Slide
Pound Sterling (GBP) has, for the most part, registered modest gains against the competition, although domestic developments have not entirely supported this.
The most detrimental news has been the Markit UK manufacturing PMI for February, which after seasonal adjustment has fallen from 52.9 points to 50.8, against more optimistic forecasts of movement to 52.3.
This represents the worst result for UK manufacturing in almost 3 years; according to David Noble, the Group Chief Executive Officer at the Chartered Institute of Procurement and Supply, ‘Demand from the domestic market was weak and…export orders…were in a similar downbeat mood.’
Noble went on to state that ‘though it may be too soon to envisage another financial downturn, the possibility will have crossed the minds of key decision-makers’.
The Pound has advanced by 0.4% against the Euro (GBP/EUR) and by 0.8% against the Japanese Yen (GBP/JPY) today, but has also fallen by -0.6% against the South African Rand (GBP/ZAR) and by -2.4% against the Russian Ruble (GBP/RUB). This triumph against the Euro is a repetition of earlier weekly movement.
Euro (EUR) Crashes Today as Poor Manufacturing Stats Override Positive Unemployment News
The appeal of the Euro (EUR) has dived dramatically today in spite of a recent announcement that should have improved the single currency’s prospects.
The triggering factors for the decline were yesterday’s Eurozone inflation data and today’s manufacturing PMIs for February; although Germany and the Eurozone’s results both rose, they still remain perilously close to contraction and fairly so-so Germany unemployment stats failed to dispel this negative outlook among investors.
The sheer weight of negative market sentiment can be observed by the fact that even with overall Eurozone unemployment falling from 10.3% to 10.4%, a four-year low, the common currency remains soft against the competition.
The Euro has fallen by -0.3% against the Pound Sterling (EUR/GBP), -0.4% against the Indian Rupee (EUR/INR) and -0.9% against the South African Rand (EUR/ZAR) today.
GBP/EUR Exchange Rate Forecast: Irish Unemployment Stats and ECB Speech Out Today
On the Eurozone side of things, the near future will see the announcement of the Irish unemployment rate figures for February. In a slightly optimistic situation, current predictions are for a reduction from 8.9% to 8.8%.
Following on from this will be a speech from the European Central Bank’s (ECB) Sabine Lautenschlager. The policymaker is scheduled to speak in New York this afternoon, giving the keynote address at a risk-management convention.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2838 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7790 today.