Pound Sterling (GBP) Exchange Rate Falls to 1.39 against the Common Currency (EUR) Today
The Pound Sterling to Euro (GBP/EUR) exchange rate declined by around -0.5% on Thursday morning.
In response to negatively revised previous figures for UK retail sales growth, the British Pound softened versus the majority of its most traded currency rivals. On the month, July’s Retail Sales grew by 0.4% but the previous figure was revised to -0.3%. On an annual basis, July’s Retail Sales advanced by 4.3%, with the previous figure negatively revised to 4.1%. Retail Sales including Auto Fuel failed to meet with expectations on both an annual and a monthly basis.
The Office for National Statistics (ONS) stated; ‘Increases were reported by department stores, other stores, household goods stores and non-store retailing offset by falls in predominantly food stores, textile, clothing and footwear stores and petrol stations.’
Also weighing on demand for the British asset was news that Co-operative Bank will not make any profit for another two years having reported yet more losses last month. Chief Executive, Niall Booker, said; ‘We won’t be profitable in 2015 and we won’t be profitable in 2016 either.’
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4032.
Euro (EUR) Exchange Rate Forecast to Hold Best Rate of 0.71 against the British Pound (GBP)
After many months of political battles, negotiations and uncertainties; embattled Greece has finally secured bailout funds. The European Stability Mechanism (ECB) immediately dispersed €13 billion which allowed the Hellenic nation to meet with financial obligations to the the European Central Bank (ECB). Trader response from the news has been comparatively muted, however, given that most expected Greece to secure funds in time. As focus shifts to Greece’s political difficulties, with many expecting Prime Minister Alexis Tsipras to call a snap election, the common currency may be subject to downside risks.
ESM Managing Director Klaus Regling said; ‘Today’s ESM disbursement will allow Greece to meet its urgent financial obligations to the International Monetary Fund and the European Central Bank, and other budgetary needs. The second sub-tranche of €10 billion will contribute to stabilising the banking sector, whose situation deteriorated sharply after the imposition of capital controls in June.’
The Pound Sterling to Euro (GBP/EUR) exchange rate dropped to a low of 1.4026 today.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Hold Losses ahead of German Consumer Confidence
Given the complete absence of further data publications to provoke changes, the Pound Sterling to Euro (GBP/EUR) exchange rate is likely to hold losses for the remainder of Thursday’s European session.
Friday is likely to see heightened GBP/EUR volatility, however, with several influential data publications to provoke changes. The German Consumer Confidence and the Eurozone Consumer Confidence Surveys are likely to spark volatility. From a British standpoint, the public finances data should impact Sterling movement.
The Pound Sterling to Euro (GBP/EUR) exchange rate advanced to a high of 1.4105 today.