The Pound Sterling to US Dollar (GBP/EUR) exchange rate declined by around -0.24% on Friday morning.
British Consumer Confidence failed to increase as the market had forecast which caused the Pound to soften versus many of its major peers. The Euro, meanwhile, is generally holding steady as traders await news from European government officials to see whether Greece’s debt repayment proposal will be accepted.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3724.
Yesterday…
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within a narrow range on Thursday morning.
After preliminary figures for fourth-quarter British growth printed positively, the Pound strengthened versus the majority of its most traded currency rivals. Sterling is holding a position of strength thanks to ongoing speculation that the Bank of England (BoE) will be one of the first major central banks to hike rates.
The Euro, meanwhile, softened versus most of its major peers despite positive labour market data out of Germany. The shared currency is unlikely to rack up any significant gains until Greece’s programme of debt repayment is approved by European governments. Most expect Germany to throw a spanner in the works.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3674.
Pound Sterling (GBP) Exchange Rate Edges Higher as GDP Meets Estimates
The preliminary figures for fourth-quarter British Gross Domestic Product equalled the median market forecast, causing Sterling to gain versus many of its major competitors. The advance has been somewhat laboured, however, with other British publications producing mixed results.
Year-on-year GDP equalled the market consensus of 2.7% growth in the fourth-quarter, with the quarterly figure showing growth of 0.5%. However; Government Spending, Gross Fixed Capital Formation, Imports, Private Consumption and Total Business Investment all declined from previous figures.
The Pound Sterling to Euro (GBP/EUR) exchange rate dropped to a low today of 1.3654.
Euro (EUR) Exchange Rate Edges Lower as Germany Questions Greek Proposal
Although the Eurogroup accepted Greece’s programme for debt repayment, they still require acceptance from key European parliaments. Many believe that the biggest challenge will be to gain Germany’s approval, not least because some German politicians have already voiced concern.
‘The question now is whether one can believe the Greek government’s assurances or not. There’s a lot of doubt in Germany, that has to be understood,’ stated German Finance Minister Wolfgang Schaeuble.
German labour market data printed positively on Thursday, re-establishing the nation’s position as a European power house. While the result hasn’t been enough to overthrow concerns regarding Greece, it has seen the Euro avoid significant declination.
German Unemployment Change doubled estimates by seeing 20,000 fewer unemployed. On a seasonally-adjusted basis, the Unemployment Rate held at 6.5%. ‘The German economy is doing really well and I don’t think this will change anytime soon,’ said Johannes Gareis, an economist at Natixis in Frankfurt. ‘The labour market is very solid and unemployment should remain very low for all of 2015.’
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Strengthen
Although both British and European data printed relatively positively, the Pound Sterling to Euro (GBP/EUR) exchange rate has potential to climb on Thursday. This is mainly due to mounting speculation that the Germans will make life difficult for the Greeks. Friday ought to see heightened GBP/EUR volatility with German inflation data due for publication.
The Pound Sterling to Euro (GBP/EUR) exchange rate advanced to a high today of 1.3685.