Pound To Euro Forecast: GBP/EUR Exchange Rate Advances As German Data Misses Target

Published: 20 Oct 2017 21:23 Forex

pound to euro exchange rate forecast

Today's Pound Sterling to Euro Exchange Rate Forecast and GBP/EUR Forex Predictions/Outlook

The Pound to Euro exchange rate advanced on Friday as German Industrial Production fell short of market forecasts.

GBP/EUR gains were limited by the UK Trade Balance figure released by the Office of national Statistics, showing a decline in value between imported and exported goods for the month of December 2014.

On Thursday the Pound to British Pound exchange rate (GBP/GBP) converts at 1

Today finds the pound to pound spot exchange rate priced at 1.

The live inter-bank GBP-USD spot rate is quoted as 1.262 today.

The pound conversion rate (against canadian dollar) is quoted at 1.715 CAD/GBP.

NB: the forex rates mentioned above, revised as of 28th Mar 2024, are inter-bank prices that will require a margin from your bank. Foreign exchange brokers can save up to 5% on international payments in comparison to the banks.

Pound to Euro Exchange Rate Outlook Today

The British Pound suffered a day of declines on Tuesday as new measures put forward by Greek finance minister Yanis Varoufakis supported positive upside across the board for the Euro, which surprisingly was the best performer on the day.

A brief foreign exchange market summary before we bring you the rest of the report:

Whilst the latest PMI construction figures beat analysts’ expectations of 57.0, the Pound saw little upside movement as traders took profit following the announcement from Yanis Varoufakis.

Growth across the construction sector rebounded unexpectedly in January, rising to 59.1 from 57.6 in December.

UK construction companies have found their feet again after a protracted slowdown in output growth at the end of 2014," said Markit's senior economist Tim Moore.

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"In short, the peak speed of the construction recovery seems to be over, but reports of its death have been greatly exaggerated."

Pound Sterling to Euro (GBP/EUR) Exchange Rate Climbs on UKConstruction

Following the release the Pound Euro exchange rate gained marginally from a daily low at 1.3230 to reach a daily high at 1.3287.

The upside soon dwindled as New Greek finance minister Yanis Varoufakis announced some new measures which involved managing the current debt plan for Greece.

The plans involved swapping portions of Greek debt for growth bonds, swapping the European Central Bank-owned Greek debt for perpetual bonds, maintaining a primary surplus of just over 1% and asking for new cash to keep the Greek banking system afloat.

Euro Traders Increased Short-Term Buy Positions

The proposal caused a reaction in the markets as traders increased their short term buy positions in favour of the euro.

The Pound to Euro rate dropped sharply following the announcement from a high at 1.3287 to reach a low of 1.3167 by the close of play.

Varoufakis made some interesting comments to follow, as he prepares to meet with his German counterpart on Thursday.

I will try to be as charming as I can in Berlin. I will tell Mr Schäuble that we may be a Left-wing riff-raff but he can count on our Syriza movement to clear away Greece’s cartels and oligarchies, and push through the deep reforms of the Greek state that governments before us refused to do,” he said.

“But I will also tell him that we are going to end the debt-deflation spiral and do what should have been done five years ago. That is not negotiable. We have a democratic mandate to challenge the whole philosophy of austerity,” he said.

In other news out on Wednesday, the Pound recouped its previous loses vs the Euro (GBP/EUR) as the latest PMI services report expanded faster than expected in January after a relatively slow pace of growth in December.

The PMI rose to 57.2 in January compared with December’s reading at 55.8.

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