Pound to Euro Forecast: Could GBP/EUR Exchange Rate Break To A Fresh 14-Month High?

April 7, 2014 - Written by John Cameron

STORY LINK Pound to Euro Forecast: Could GBP/EUR Exchange Rate Break To A Fresh 14-Month High?

In today's Currency News Pound Euro exchange rate forecast we ask: Could the GBP/EUR Exchange Rate Break To A Fresh 14-Month High?

This week’s session gets off to a relatively slow start from the perspective of data releases. The highlight of today’s schedule comes in the form of this morning’s whole of eurozone Sentix Investor Confidence survey, due for publication at 0930hrs BST.

Analysts are expecting the figure to point to a marked improvement from March’s showing of 13.9, making it an early potential banana skin for the single currency. A print of anything less than 13.9 and the euro is bound to ship support against the Pound, sending the Pound Sterling to euro exchange rate up towards the range-topping 1.2258 GBP/EUR which it peaked out at earlier this year. Conversely, a result of above the anticipated 14.2 will be required to support the euro Pound exchange rate (EUR/GBP).

The Pound Sterling to Euro exchange rate is trading down -0.08% at 1.20888 GBP/EUR. The Euro to Pound Sterling exchange rate is trading up +0.08% at 0.82721 EUR/GBP.

Its likely to be a case of ‘all’s quiet on the Western front’ for the remainder of today’s session, leaving investors to ponder last Friday’s keynote US labour market numbers. As far as equities traders are concerned, the latest American jobs figures struck the sweet spot situated between ‘not bad’ and ‘not fantastic’. 192,000 new jobs in one month is encouraging, even if it isn’t quite as good as had been hoped. However, this reading, along with the news that the overall level of joblessness in the States had stubbornly remained at 6.7%, was not enough to cause market participants to worry about the Federal Reserve increasing the pace of its Quantitative Easing taper. This outcome is likely to see the high-yielders and Commodity Dollars well-supported on the day. Look for the Pound Australian Dollar (GBP/AUD), Pound New Zealand Dollar (GBP/NZD) and Pound Canadian Dollar (GBP/CAD) pairings to shed support as the session progresses.

Industrial and Manufacturing Production numbers for March, due for release tomorrow morning, provide the next risk event of note for Sterling. A strong showing from both could send the Pound euro exchange rate up towards a new 14-month high above the 1.2258 GBP/EUR threshold.

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TAGS: Australian Dollar Forecasts Canadian Dollar Forecasts Daily Currency Forecasts