Today's Pound Sterling to Euro (GBP-EUR) Exchange Rate Close to Best Level of 1.39
Although having endured sharp losses against most of its major peers last week, the Pound Sterling to Euro exchange rate strengthened significantly in response to a dovish outlook from European Central Bank President Mario Draghi.
The British Pound enjoyed a very productive week against the Euro (GBP/EUR) last week, although it endured sharp losses versus the vast majority of the 16 most actively traded currencies.
Focusing on the positive news, the UK currency traded up from a level below 1.35 on Wednesday to end the week pushing highs around the 1.39 level following the ECB press conference on Thursday.
The Central Bank left interest rates unchanged at 0.05%, there isn’t anywhere to go there, but speculation has been rife that policy makers will look to increase quantitative easing measures following recent comments that the Bank is set to miss its inflation target and by some distance.
The Euro was weak in anticipation of Draghi’s statement and he didn’t disappoint. A largely dovish rhetoric was met with more Euro selling, as the ECB President gave a very transparent nod to the market that the Bank will look to increase the amount of QE in December.
Today's Pound / Euro / Dollar Exchange Rates
On Friday the Euro to British Pound exchange rate (EUR/GBP) converts at 0.856
The GBP to EUR exchange rate converts at 1.168 today.
FX markets see the pound vs canadian dollar exchange rate converting at 1.716.
FX markets see the pound vs australian dollar exchange rate converting at 1.908.
The GBP to USD exchange rate converts at 1.256 today.
NB: the forex rates mentioned above, revised as of 3rd May 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.
Euro to US Dollar Exchange Rate Slid to 1.10 after ECB left Policy Unchanged
The Euro subsequently plummeted towards 1.10 versus the U.S Dollar and made significant losses across all major currencies.
The downward movement on EUR/USD also had a negative effect on the GBP/USD exchange rate, which previously had hit a high of 1.55 last week.
Sterling ended the week just above the 1.53 level and was also struggling to stem the losses elsewhere, even against the commodity-driven currencies.
AUD, NZD Exchange Rate Forecast: UK GDP Could Send Pound Sterling Lower this Week
The Australian and New Zealand Dollars have enjoyed a bit of respite over the past week, amid suggestions that both the RBA and BNZ will refrain from cutting interest rates any further, while some renewed confidence in equity markets also had a positive effect.
Looking ahead to this week and the focus will be firmly on tomorrow’s preliminary GDP data for the third quarter and the Pound could come serious pressure with the wrong result.
The market is anticipating a slowdown to 0.6% growth in the three months to September, however I believe this may be a little too optimistic.
The decline in the key industries of services, manufacturing and construction has accelerated over the past quarter, leaving consumer spending as the primary driver of growth.
Low unemployment and below zero inflation, combined with rising wage growth, has indeed supported the pace of spending this year but there is a good chance the decline in growth will be bigger.
Such a result would really put the Pound on the back foot and speculation over additional QE from the Bank of England will ramp up, especially given the statement by the ECB last week.
GBP/EUR/USD Related Data on October 26th
GER 09:00 Ifo Business Climate (October)
U.S 14:00 New Home Sales (September)
GBP UPDATE
As traders await British growth data which is expected to show that the economy slowed to 0.6%, the Pound is holding steady versus the Euro and US Dollar in the early stages of Tuesday's European session.
The Pound Sterling to Euro exchange rate is currently trending in the region of 1.3850, whilst the Pound to US Dollar exchange rate is currently trending in the region of 1.5311.