Today's Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast Report with Live Conversions / Predictions
The recent British pound to euro exchange rate has been on a consistent uptrend since the lows of 1.34 seen in October 2015.
The GBP/EUR conversion has however edged down to 1.42 despite British economic data produced mostly positive results today.
Increased speculation that the Bank of England (BoE) will be very slow to hike rates continues to weigh on Pound Sterling demand.
The second-estimate for third-quarter UK Gross Domestic Product met with expectations of 0.5% growth on the quarter and 2.3% growth on the year.
In addition, third-quarter Business Investment eclipsed the respective median market forecasts on both a quarterly and annual basis.
However, on a slightly more disappointing basis, UK Consumer Confidence dropped from 2 to 1 in November despite predictions confidence would hold steady.
A brief foreign exchange recap before we bring you the rest of the report:
On Thursday the Pound to British Pound exchange rate (GBP/GBP) converts at 1
FX markets see the pound vs pound exchange rate converting at 1.
The GBP to CHF exchange rate converts at 1.134 today.
At time of writing the pound to us dollar exchange rate is quoted at 1.244.
NB: the forex rates mentioned above, revised as of 18th 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.
Meanwhile, the euro edged higher versus the pound but is holding a comparatively weak position versus the majority of its currency rivals.
This is due to heightened speculation that the European Central Bank (ECB) will look to ease monetary policy in December in order to stimulate Euro-area price pressures.
In his Autumn Statement, George Osborne flagged weakness in the Eurozone as one of the damaging prospects to British growth, so further ECB easing is likely to be Sterling supportive.
The Pound Sterling to Euro exchange rate was trending within the range of 1.4172 to 1.4247 during Friday’s European session.
Pound to Euro Exchange Rate Forecast
European economic data produced a mixed-bag of results on Friday. German Import Prices dropped below expectations on both a monthly and an annual basis in October.
The preliminary estimate for November’s Spanish Inflation Rate eclipsed predictions on a monthly and yearly basis.
Eurozone Business Confidence failed to meet with expectations in November, although the final reading for November’s Consumer Confidence came in at -5.9% which bettered predictions of -7.7.
November’s Eurozone Industrial Sentiment contracted beyond the market consensus, but Economic Sentiment in the same month rose above the median market forecast.
US Dollar Exchange Rate Advances despite Quiet Holiday Trade
Given that the national US holiday Thanksgiving caused subdued market trade yesterday, the USD/EUR and USD/GBP exchange rates saw minimal volatility.
Although trade has picked up on Friday, a complete absence of domestic data is likely to see the US Dollar trending comparatively statically.
With that being said, however, the USD climbed versus the GBP and EUR on Friday morning as traders continue to price in the increased likelihood of a December Federal Reserve interest rate hike.
November 27th UK, Eurozone, US Data & Currency Exchange Predictions
Here we highlight some of the key economic releases to be aware of later today.
With today’s economic docket sparse of influential domestic data, there are no further publications (with the potential to provoke marked changes to the Pound, Euro and US Dollar) to highlight.
Four-Year High Eurozone Economic Confidence Fails to Provoke Euro Exchange Rate Appreciation
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within a limited range on Friday afternoon.
Despite the fact that Euro-area economic confidence equalled the highest level in over four years, the single currency failed to make notable gains versus most of its currency rivals.
This is mostly due to speculation that next week’s European Central Bank (ECB) interest rate decision will see policymakers ease policy by either cutting the cash rate or expanding the program of quantitative easing.
Danske Bank warn that shorting the euro isn't a certainty in the near-term forecast:
"While yesterday’s Reuters story of ECB considering a two-tier penalty charge drove broad-based EUR-weakness – amid markets speculating in more than a 10bp rate cut on 3 December – it also raises some uncertainties as to the possibilities of setups. In FX markets it is the marginal rate of interest that is of importance and consequently the effect on the EUR could be more ambiguous than what one at first could assume."