The Pound Sterling to Euro (GBP/EUR) exchange rate advanced by around 0.49% on Tuesday morning.
In general, the Pound softened versus its peers on Tuesday morning after last week’s significant surge caused a prolonged spate of trader profit-buying. Positive results from CBI Trends data may see the Pound recoup some of the losses registered over the past few days.
The Euro, meanwhile, dived versus its major rivals after Greece was given 48 hours to secure a deal to unlock aid. Whilst the latest reforms have been described as a positive step forward, many fear that Greek Prime Minister Alexis Tsipras will struggle to convince his own party members to accept a deal which compromises their political identity.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4012.
Yesterday…
The Pound Sterling to Euro (GBP/EUR) exchange rate softened by around -0.70% on Monday afternoon.
With a complete absence of domestic data to provoke movement, the Pound has seen changes as a result of fluctuations in the wider currency market. A slight downtrend can be linked to trader profit buying after last week’s appreciation opened up some attractive selling opportunities.
The Euro, meanwhile, advanced on Monday afternoon in response to optimism regarding the increased likelihood of Greece securing financial aid. Although today’s Eurogroup meeting hasn’t seen the Hellenic nation secure bailout funds, many Eurozone officials hinted that the proposals submitted today were more in line with demands from creditors.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3899.
Pound Sterling (GBP) Exchange Rate Forecast to Soften against the Shared Currency on Profit-Taking
Over the past week the British asset surged versus its major peers in response to positive UK data. Of particular note was accelerated wage growth and inflation moving away from deflationary territory. This will put pressure on the Monetary Policy Committee (MPC) to hike rates with inflationary headwinds easing. ‘The key take-away is that, if the pace of economic growth revives, as widely expected, the recent upturn in pay takes away the main remaining argument to hold off with raising interest rates, and pressure to tighten policy looks set to build significantly as we move into the second half of the year,’ Chris Williamson, chief economist at Markit, said.
A complete absence of domestic data on Monday has seen the Pound fluctuate versus its major peers. A general declination can be attributed to traders locking-in profit thanks to the healthy surge last week.
The Pound Sterling to Euro (GBP/EUR) exchange rate dropped to a low of 1.3912 today.
Euro (EUR) Exchange Rate Forecast to Climb against the British Pound after Moscovici Optimism
In the Eurogroup meeting today, Greece submitted fresh reforms which aroused quiet confidence in some Eurozone officials. Although there was still no deal made today, many seemed to leave the meeting feeling that progress had been made. The summit tonight will be a chance for an open discussion about Greece in the hopes of finding solutions to the financial crisis.
In the press conference following the Eurogroup meeting, European Commissioner Pierre Moscovici stated; ‘This is a solid basis, but work still needs to be done. We are currently looking for an agreement but we haven’t reached one yet.’ Eurogroup president Jeroen Dijsselbloem echoed this sentiment adding; ‘It is also an opportunity to get that deal this week, and that is what we will work for.’
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Hold Losses ahead of Summit
Whilst traders await tonight’s summit to discuss Greece, the Pound Sterling to Euro (GBP/EUR) exchange rate is likely to hold losses. With that being said, the single currency could see fluctuations as a result of Eurozone Consumer Confidence data, due for publication later on Monday afternoon. Tuesday will see heightened GBP/EUR volatility with several data publications pertaining to both the UK and Europe due for release.
The Pound Sterling to Euro (GBP/EUR) exchange rate climbed to a high of 1.4011 today.