Sterling's bullish rise on last week's currency markets saw the British pound to euro conversion rate surge to the best levels investors had seen in nearly four months. We examine the latest euro-related fx forecasts targeting the sterling and the US dollar in the short, medium and long-term forex outlooks
After sterling's solid performance on this week's foreign exchange markets, the British pound to euro exchange rate peaked at the best conversion level seen since the beginning of February 2016. See today's update.
The GBP/EUR spot rate was clearly positive on the whole, with this advantageous performance starting on Tuesday and persisting throughout the week.
The supportive sources in question were a series of EU Referendum polls, many of which put the ‘Remain’ campaign as holding over 50% of the vote, compared to a rough average of 43% among ‘Leave’ voters.
The pound sterling was less aided by Thursday’s news, which consisted of the revelation that in the first quarter, UK GDP fell slightly and business investment dropped heavily.
Other Pound Sterling / Currency Exchange News
Latest Pound/Euro Exchange Rates
On Saturday the Pound to British Pound exchange rate (GBP/GBP) converts at 1
The pound conversion rate (against pound) is quoted at 1 GBP/GBP.
FX markets see the pound vs us dollar exchange rate converting at 1.237.
At time of writing the pound to swiss franc exchange rate is quoted at 1.126.
NB: the forex rates mentioned above, revised as of 20th Apr 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.
British Pound (GBP) Sees Considerable Gains on Euro (EUR) Ahead of PMIs and House Prices This Week
The coming week will see a scattering of economic announcements, with the focus of sterling investors likely to be reserved for PMI and house price index results for May.
In the former category, Wednesday will bring the UK manufacturing PMI for the month while Thursday and Friday will respectively bring the construction and services results.
House price data will also be scattered over the mid to late week, with Wednesday featuring the Nationwide house prices outcomes and Friday featuring the Halifax house price index results.
Limited Impact of Eurozone Data Left Euro (EUR) Exchange Rates Rudderless Last Week
The euro was generally listless against its peers last week, as a limitation on domestic data compounded imperfectly resolved situations elsewhere.
One of the detracting factors was the Greek debt crisis, which made the headlines again due to a Eurogroup meeting on the issue. Progressive agreements were reached, but critics argued that debt relief was the only real solution to the problem.
Elsewhere, French strikes by workers over planned changes to labour laws put the nation under considerable strain, with nuclear plants and fuel production and distribution facilities being blockaded by protesters.
Eurozone and Germany Contributions to make up This Week’s Movement
Although there are a large number of diverse Eurozone ecostats due in the coming week, it seems likely that contributions from Germany and the Eurozone will have the greatest level of impact.
Movement is expected to come at the start of the week, when the Eurozone confidence stats for May will be released on Monday morning along with the German inflation rate data for the same month.
Following on from this news on Tuesday will be the German unemployment rate results for May, while the Eurozone-wide variant is expected to come a few hours afterward.
Pound Sterling to Euro Exchange Rate Forecast: ’Brexit’ would ‘Wreck the Economy’, says PM
One of the last EU Referendum comments to come in last week came from the Prime Minister himself, who made an aggressive argument that leaving the EU to try and get a grip on immigration was the wrong choice.
Speaking on Friday, Cameron said:
‘Let me say this to those who want to leave the single market and cause all the damage that would do to jobs and to growth and to investment - I do not believe for one minute that the right way to control immigration is to wreck our economy’.
Key GBP and EUR Related Economic / Forex Events This Week
This week's euro-focused events in include the German Import Prices (source), German Prelim CPI (source), Spanish Flash CPI (source), German Retail Sales, German Unemployment Change (source), M3 Money Supply (source), Italian Monthly Unemployment Rate, Private Loans, CPI Flash Estimate (source), French / Spanish / German / Eurozone Final Manufacturing PMIs, Spanish Manufacturing PMI (source), Spanish Unemployment Change (source), French 10-y Bond Auction (source), Minimum Bid Rate, ECB Press Conference, French / German / Spanish /Eurozone Final Services PMIs and finally the Retail Sales.
Sterling-related economic releases include the Manufacturing PMI, Net Lending to Individuals (source), M4 Money Supply, UK Mortgage Approvals and lastly the UK Construction PMI.
Today's GBP to EUR Rate Rallies to Best Conversion of 1.32
Tuesday's trading session has seen sterling jump against the single currency, testing best conversion highs of 1.32.
Bank holiday Monday's session found the GBP/EUR exchange rate edging lower, trending in the region of 1.3116.
The Spanish Flash CPI printed as forecast, whilst the German Import Prices fell short of market expectations.