Pound To Euro Exchange Rate Trends Above Major Support

Published: 20 Oct 2017 21:24 Currency Markets Forex

pound to euro exchange rate forecast

Today's British pound to euro rate (GBP/EUR) was given some slight relief from its latest bearish trend pattern which saw net short positions selling against Sterling at one of the best levels for years and increasing on a daily basis.

Despite Chinese growth data falling short of forecasts (hitting a 25 year low), risk sentiment improved as the week progressed and the British Pound Sterling was pressured lower against the majority of its currency counterparts.

The Pound Vs Euro exchange rate was experiencing its longest downward streak since the introduction of the single currency in 1999 and the Pound Vs US Dollar also dropped to a multi-year low.

Here are the latest FX rates for your reference:

On Thursday the Euro to British Pound exchange rate (EUR/GBP) converts at 0.855

The live inter-bank GBP-EUR spot rate is quoted as 1.17 today.

Today finds the pound to new zealand dollar spot exchange rate priced at 2.114.

Today finds the pound to us dollar spot exchange rate priced at 1.262.

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 Sterling (GBP) Exchange Rate one of the Worst Performing Currencies of 2016

Sterling is one of the worst performing currencies in the market at present and with the latest run of poor economic data coming out, it’s unlikely it will change anytime soon.

The British Pound continued its bearish run on Tuesday, as the latest UK CPI Inflation figure disappointed market participants, despite gaining 0.1% and coming in higher than analyst had forecast.

The UK CPI figure showed an annual rise of 0.2% percent, as forecast by analysts, which was above the November reading of 0.1%.

The month on month figure came slightly above expectations by printing 0.1%, above the prior and expected figure of 0.0%.

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Ben Brettell, senior economist at Hargreaves Lansdown, suggests: ‘This continues the trend of inflation being at or very close to zero and places little pressure on the Bank of England to lift interest rates. Those hoping for higher rates on this side of the Atlantic shouldn't hold their breath.’
australian dollar to pound sterling exchange rate

GBP/EUR Exchange Rate Down 0.8 per cent Ahead of UK Labour Market Data

The UK Pound Vs Euro exchange rate dropped by 0.80% from the opening on Tuesday, despite the latest CPI reading gaining to the highest level since January 2015. The GBP/EUR opened at 1.3187 to now trade below the psychological 1.30 level, which is the first time in 12 months.

Pound Sterling Predictions: GBP Down VS AUD, NZD, CAD Following Chinese GDP

The Pound has also lost a lot of ground against the risk sensitive currencies, with 1.34% lost against the Australian Dollar and 1.10% lost against the New Zealand in late European trading, despite one of the slowest GDP readings from China in 25 years.

The full-year growth of 6.9% was only just short of government expectations of 7% but by contrast, growth in 2014 stood at 7.3%. This caused jitters in the markets and put increased pressure on Beijing to address fears of a prolonged slowdown which will affect the whole of the financial markets.

The next major focus for the British Pound will be Wednesday’s Jobless claims figure and the latest UK Unemployment rate due to be released in early European trading.

The following week will see the publication of the UK's growth data for the fourth quarter - a potentially market-moving release.

Update: "Today’s event risk revolves around the ECB policy decision and Draghi’s press conference. Having hurt the market at last month’s meeting, by easing less than expected, the consensus is for no change to be made." Lloyds 21 January 2016

Read the latest here: Euro Exchange Rates Gain Today Despite Dovish Draghi

Scotiabank analysts discuss the risks to the euro in their latest note to clients:

"The ECB has held policy settings steady at today’s meeting. Various governing council members have made it clear that they see no need to adjust policy at this point and the ECB has stated that it will review the asset purchase programme at the March meeting."

"As usual, the main interest will fall on President Draghi’s press conference."

"We think risks are tilted towards a dovish-sounding statement; the Eurozone economy has shown signs of growth but inflationary pressures remain subdued and reaching the ECB’s 2% inflation target remains a challenge."

"We still prefer to fade EUR/USD gains to the 1.10 area."

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