The Pound Sterling to Euro (GBP/EUR) exchange rate softened by around -0.30% on Thursday morning.
As traders await the Bank of England (BoE) rate decision, although few predict any significant changes, the Pound is generally edging lower versus its most traded currency rivals. The fractional declination can be attributed to mixed results from house price data.
The single currency, meanwhile, edged higher versus many of its major peers after German trade surplus eclipsed market expectations. The Euro is likely to fluctuate over the course of Thursday’s European session, however, as we are yet to learn whether Greece will be able to repay the International Monetary Fund on time as promised.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3750.
Yesterday…
The Pound Sterling to Euro (GBP/EUR) exchange rate strengthened by around 0.56% on Wednesday afternoon.
After British economic data printed reasonably positively, led by a record-breaking figure in New Car Registrations, the Pound advanced versus many of its most traded currency counterparts. The appreciation was aided by a report from the Bank of England (BoE) which predicted that mortgage applications would increase significantly over the course of the next three months.
The Euro, meanwhile, softened despite relatively positive domestic data results. The depreciation is as a result of fears that Greece will default on its repayment to the International Monetary Fund (IMF). With little known as to the repercussions of a defaulted payment, investor confidence has taken a dent.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3764.
Pound Sterling (GBP) Exchange Rate Climbs on Car Sales
Although the forthcoming British general election is weighing on investor confidence thanks to political uncertainties, the Pound strengthened versus many of its most traded currency rivals. This was due to New Car Registrations data which showed the highest sales on record in March and the fourth consecutive month of growth.
Additional Sterling gains are as a result of a report from the BoE which forecast mortgage applications will spike in the next three months. This prediction is based on the fact that the past few months have seen a decline in applications.
The Pound Sterling to Euro (GBP/EUR) exchange rate dropped to a low of 1.3667 today.
Euro (EUR) Exchange Rate Softens despite Positive Data
European economic data printed positively on Wednesday, but the shared currency declined versus most of its major peers. This is as a result of expectations that Greece will default on its first IMF repayment, due on April 9th. With little known as to the problems Greece may face if they do default, investor confidence has been significantly dampened.
The declination has been somewhat slowed however after officials offered assurances that Greece did not request financial aid from Russia during Wednesday’s talks between the heads of the two nations.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Hold Gains
With an absence of domestic data to provoke movement, and with ongoing geopolitical tensions dictating common currency investment, the Pound Sterling to Euro (GBP/EUR) exchange rate is likely to hold gains for the remainder of Wednesday’s European session.
Thursday will see the BoE interest rate decision and German trade balance data which are likely to cause GBP/EUR volatility.
The Pound Sterling to Euro (GBP/EUR) exchange rate climbed to a high of 1.3774 today.
