Pound Euro Exchange Rate Forecast - Gains Predicted for GBP/EUR

February 28, 2014 - Written by Tim Boyer

STORY LINK Pound Euro Exchange Rate Forecast - Gains Predicted for GBP/EUR

The Pound euro exchange rate GBP/EUR has lurched one way and then the other so far during today’s session. The Pound recorded strong gains against the eurozone tender in early trading thanks to the early morning publication of this month’s Nationwide House Price survey, which showed that British property prices are increasing at an annualised 9.4%. The month-on-month uptick of 0.6% was also greater than the 0.5% which analysts had been anticipating. The 12 monthly rate of expansion in the UK housing sector was the fastest it had been since the first half of 2010, providing further evidence that the home economy is continuing to pull away from the malaise which it fell into after the 2008 global credit crisis.

Price action in the markets following the Nationwide publication sent the Pound euro exchange rate up to as 1.2209 GBP/EUR, well within striking distance of its 13 month high of 1.2258. However, the shift upwards proved ephemeral as the pair shed over a cent following an 1100hrs data release. The move sent the pair all the way down to 1.2095 as investors rapidly scrambled to adjust their positions following the publication of eurozone inflation figures. Analysts had been expecting the data to show that core prices in mainland Europe had risen by 0.8%, so the print of 1.0% was way ahead of expectations. The numbers suggest that the European Central Bank may not now need to further loosen its already loose monetary stance, in the near term at least.

A further factor feeding in to the Pound euro exchange rate GBP/EUR today has been yesterday’s decision by lawmakers in Cyprus to reject a key part of the EU/IMF’s bailout plan for the debt-laden Mediterranean state. Cypriot politicians now have until next Wednesday to pass the plan or risk plunging the eurozone into another damaging debt crisis. For this reason, GBP EUR is forecast to trade on a neutral to negative footing moving forward.

Important Pound Sterling / Euro Exchange Rates (Updated: 10:00 GMT 01/03/2014)

The Pound Sterling to Euro exchange rate is trading value +0% at 1.21315 GBP/EUR.
The Euro to Australian Dollar exchange rate is trading value +0% at 1.54527 EUR/AUD.
The Euro to Canadian Dollar exchange rate is trading value +0% at 1.52713 EUR/CAD.
The Euro to Swiss Franc exchange rate is trading value +0% at 1.21438 EUR/CHF.
The Euro to Pound Sterling exchange rate is trading value +0% at 0.82430 EUR/GBP.
The Euro to New Zealand Dollar exchange rate is trading value +0% at 1.64512 EUR/NZD.
The Euro to US Dollar exchange rate is trading value +0% at 1.38017 EUR/USD.
The US Dollar to Euro exchange rate is trading value +0% at 0.72455 USD/EUR.

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TAGS: Currency Predictions Euro Forecasts Euro Pound Forecasts Pound Euro Forecasts