The Pound Sterling to Euro (GBP/EUR) exchange rate has improved since yesterday, and the Pound is now trending in a narrow range.
UK Trade Balance Figures Better than Expected, GBP/EUR Exchange Rate may improve ahead of impending €3.5bn Greek Repayment
The Pound Sterling (GBP) has gained marginally by 0.1% against the Euro (GBP/EUR) today, after the negative reaction to yesterday’s Bank of England (BoE) Monetary Policy Committee (MPC) minutes abated overnight. The Pound has had a mixed performance elsewhere, with a rise of 0.3% against the Swiss Franc (GBP/CHF) being offset by a -0.4% fall against the Australian Dollar (GBP/AUD). The UK June Visible Trade Balance figure came in earlier, and while the Trade deficit increased to -£9.1bn, this was an improvement over the forecast -£9.3%.
The Euro (EUR) has had a mixed performance today, after doubts emerged that the Greek government would be incapable of meeting their latest scheduled repayment, a €3.5bn sum due to the European Central Bank on August 20th. In order to pay this amount, the Greek government must close the new proposed bailout deal before this date; negotiation teams estimate a deal being reached on August 15th, so any delays past this date will likely devalue the Euro amid resurging fears of a ‘Grexit’.
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate declined sharply today after the results of ‘Super Thursday’ upset expectations.
GBP to EUR Exchange Rate News: Pound Drops across the Board after UK Interest Rate Increase Hopes are quashed
The Pound Sterling (GBP) dropped rapidly against most competitors today after only one member of the Bank of England (BoE) Monetary Policy Committee (MPC) voted in favour of increasing the UK interest rate. Although nobody expected an interest rate hike to occur, optimistic forecasts were for a more uneven vote that would indicate a possible rise in the UK interest rate in the future. Speaking after the minutes were released, BoE Governor Mark Carney said that the ‘Path is more important than the timing of the first increase’.
The Pound fell by over -0.6% against the Euro (GBP/EUR), the US Dollar (GBP/USD) and the Canadian Dollar (GBP/CAD), and saw greater losses of more than -0.9% against the New Zealand Dollar (GBP/NZD) and the South African Rand (GBP/ZAR). The worst loss for the Pound today was a -1.1% fall against the Israeli New Shekel (GBP/ILS), while the greatest gain was a 1.1% rise against the volatile Russian Ruble (GBP/RUB).
Euro to Pound Sterling (EUR/GBP) Exchange Rate Rises following Turbulent Week for Common Currency
The Euro to Pound Sterling (EUR/GBP) exchange rate rose by 0.6% today after the Pound (GBP) dived against all major rivals. The common currency has had a mixed performance elsewhere, with a 0.4% gain against the Swiss Franc (EUR/CHF) and the Polish Zloty (GBP/PLN), but trending in a narrow range against other competitors.
The Euro has had a mixed day in terms of data releases; the German Construction PMI for July showed a marginal decline, but the German and Eurozone Retail PMI figures for July both indicated growth. Greek Prime Minister Alexis Tsipras said that the negotiations were in the ‘final stretch’ for reaching a (new) bailout agreement, but yesterday’s damning analysis of the Greek Debt Crisis by the National Institute of Economic and Social Research (NIESR) has called the viability of any further Greek bailouts into question.
Pound Sterling to Euro Exchange Rate Forecast: Stabilisation of the Pound in the Future may Undo EUR/GBP Exchange Rate
Despite the unexpected losses the Pound (GBP) has seen today, these declines are expected to stabilise after the knee-jerk reaction to the disappointing BoE news subsides. The NIESR GDP estimate is due later today, and given the influence of this estimate, any major growth figures may go a long way in restoring confidence in the Pound.
The Euro (EUR) has more concrete figures due for release tomorrow; the German Industrial Production and Trade Balance results for June. Both have been forecast for minor growth, and this boost to the Eurozone economy may see the Euro extend its gains over the reeling Pound (EUR/GBP).
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4269 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7010 today.