British Pound to Euro Exchange Rate Outlook, Forex Forecasts and Currency Exchange Predictions
Following four consecutive days of positive trading for GBP, the British Pound to euro exchange rate dropped sharply on Thursday as the Bank of England lowered its growth forecast for the UK economy.
The cautionary statement from BoE Governor Mark Carney had a detrimental impact on the Pound against most of the majors with Sterling dropping against every major counterpart apart from the US Dollar, which suffered significant losses on Wednesday.
A quick foreign exchange market summary before we bring you the rest of the report:
On Thursday the Pound to British Pound exchange rate (GBP/GBP) converts at 1
At time of writing the pound to pound exchange rate is quoted at 1.
FX markets see the pound vs us dollar exchange rate converting at 1.247.
Today finds the pound to canadian dollar spot exchange rate priced at 1.716.
Please note: the FX rates above, updated 18th Apr 2024, will have a commission applied by your typical high street bank. Currency brokers specialise in these type of foreign currency transactions and can save you up to 5% on international payments compared to the banks.
British Pound to Euro Exchange Rate Outlook: Growth Forecast Sends GBP-EUR Conversion Down
The bank cut its 2015 growth forecast from 2.9% to 2.5% and its 2016 GDP forecast from 2.9% to 2.6%, to reflect a reduction in productivity and house building projections.
"The Bank of England's latest inflation report supports financial markets' (and our own) view that the MPC [Monetary Policy Committee] is in no rush to raise interest rates," said Vicky Redwood, chief UK economist at Capital Economics.
"This suggests that the MPC sees the market expectations on which the forecast is based - for interest rates to start rising in the middle of next year and reach just 1.25% by the end of 2017 - as broadly correct."
This is one of the primary reasons for the weakness in Sterling as market participants will see this as negative and investors are now likely to seek higher yielding assets or currencies for a better short term return.
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Recent Best 2015 British Pound Conversions vs Euro Fall Away
The Pound to Euro rate dropped back following the Bank of England meeting, with GBP/EUR dropping from a weekly high at 1.4040 to reach a daily low at 1.3832 by the close of business on Wednesday. Net short positions have also increased overnight with the Pound actively down again today, falling as low as 1.3798 in early morning trading.
At time of writing, the British Pound to Euro exchange rate converted 0.17 per cent higher at 1 GBP is 1.38557 EUR.
Looking across the board, the Pound Dollar exchange rate remains reasonably resilient to the growth forecast with the GBP/USD trading at a yearly high today, trading as high as 1.5815, representing the highest level since December 2014
Pound Sterling to Euro (GBP/EUR) Exchange Rate Today:
The Pound Euro (GBP-EUR) exchange rate firmed on Friday following the release of the UK construction data, showing the output increased more-than-predicted in March 2015.
The Pound Sterling to US Dollar (GBP/USD) exchange rate edged lower as foreign exchange market attention turned to US data releases later today.