Euro to Pound Exchange Rate Declines as Volkswagen Emissions Crisis Continues to Take Toll on German Industry and Investor Confidence
It would appear that the VW emissions scandal has finally started to hinder the Euro rates today, as the GBP-EUR exchange rate has returned to an uptrend after having spent much of last week in a decided slump.
As accusations have spread and the ultimate impact of the fraudulent emissions data begins to make itself clear, investors have become increasingly concerned for the implications this will have upon the automobile industry and the wider German economy.
With both Audi and Skoda having now admitted use of the so-called ‘defeat devices’ the situation is looking increasingly bleak for the Eurozone and, by extension, the common currency.
With economic data generally lacking on Monday, the GBP/EUR exchange rate has been able to capitalise on the resultant weakness and begin to retake some of its recent losses.
A quick foreign exchange market summary before we bring you the rest of the report:
On Friday 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 1.25.
The GBP to AUD exchange rate converts at 1.916 today.
Today finds the pound to canadian dollar spot exchange rate priced at 1.707.
Please note: the FX rates above, updated 26th 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.
Pound to Euro Forecast: GBP-EUR Conversion Rate Could Rally with Weakening German Inflation Data
The rest of the week is looking to be more volatile for the GBP/EUR conversion rate, with major releases due for publication from both the Eurozone and UK. German Consumer Price Index data on Tuesday could spur the Euro onto another bullish run, although the inflationary figures do also have the potential to prompt a marked slump in demand should they prove disappointing.
While European Central Bank (ECB) policymakers have recently been talking down the possibility of fresh monetary loosening measures a lack of progress towards inflation targets could force their hand, a prospect to which investors will not react kindly.
GBP-USD Exchange Rate Making Modest Gains as US Home Sales Disappoint
Monday afternoon provided a mixed slate of results for the US, as the year-on-year Personal Consumption Expenditure Core came in as expected while August Pending Home Sales defied forecast to slip on the previous month. For the hawks closely watching the Federal Open Market Committee (FOMC) and the odds of an interest rate rise coming before the end of the year this did not offer the conclusive support for which they would have hoped. Lacking any particularly strong positive sentiment in response, the GBP/USD currency pair continued to climb further away from the multi-month low of the previous week.
Pound (GBP) Waiting on Positive PMIs to Maintain Current Trend, ‘Buck’ (USD) Set to Rise with Approaching Employment Data
The Pound will be looking to support its current uptrend with strong showings on the upcoming Construction and Manufacturing PMIs, which pundits will hope to show a continuing recovery in the domestic economy.
Meanwhile, trading on the ‘Greenback’ is likely to remain volatile ahead of the particularly crucial Unemployment Rate and Change in Non-Farm Payrolls for September. As these indicators are afforded a high level of importance by the FOMC when debating a rate decision positive printings here would certainly boost the ‘Buck’ onto another bullish run.
Latest Exchange Rate News Today:
The Pound to Euro exchange rate was trending within a limited range on Tuesday morning, with a spot rate of around 1.3490.
As traders await both British and European economic data to provoke volatility, the pairing is likely to continue holding steady.
Meanwhile, the Pound to Dollar exchange rate edged higher by around 0.2% after mixed messages from Federal Reserve officials caused confusion amongst futures traders trying to find clues regarding the timing of a Fed benchmark rate hike.
The GBP-USD conversion rate was trading in the region of 1.5192 in the early stages of Tuesday’s European session.