Euro to Pound - Latest Exchange Rate Forecast Confirms EUR GBP Conversion Rate Declined

September 17, 2014 - Written by James Fuller

STORY LINK Euro to Pound - Latest Exchange Rate Forecast Confirms EUR GBP Conversion Rate Declined

The Euro to Pound exchange rate (EUR/GBP) continues to give up ground on Friday after the UK currency managed to recover the vast majority of the losses it sustained last week.

A series of opinion polls published earlier in the week confirmed support for the No to Independence campaign was growing ahead of the Scottish Independence Referendum.

The news eased market concerns over the possibility of a breakup of the United Kingdom and all that would entail.

The Pound managed to advance to its best level in the session against the US Dollar and other peers yet another a new poll published on Wednesday indicated that support for the yes campaign had retaken a narrow lead ahead of Thursday’s referendum. Concerns over tomorrows vote saw the GBP/USD exchange rate tumble to a 10-month low and drop sharply against the Euro.

"These polls have settled market nerves and I think a lot of people are preparing themselves for a No vote, If that happens obviously sterling will rebound, but clearly not as much as it will fall in the event of a Yes,’ said the head of an international banks currency trading desk.

Also offering support to the Pound was the release of data, which showed that the UK’s unemployment rate declined to 6.2% in the three months to July, beating economist expectations for a figure of 6.3%.

The data also showed that the number of UK citizens claiming unemployment benefit also dropped more than expected by 37,200 in August, beating economist forecasts for a decline of 30,000. July’s figure was also revised to show a drop of 37,400.

Another report showed that average earning rose by 0.6% in the three months to July, above expectations for a 0.5% gain, after falling by 0.4% in the three months to June. Salaries, excluding bonuses, were up 0.7% year-over-year from 0.6% in the three months to June.

Better wage growth is one of the Bank of England’s key factors before it considers raising interest rates.

The BoE minutes meanwhile showed that the monetary policy committee (MPC) was split again last month with both Martin Weale and Ian McCafferty continuing to vote in favour of interest rate increases.

The Euro meanwhile was continuing to be weighed upon by events in Ukraine. After imposing fresh sanctions against Russia economists are now concerned over possible impacts on the Eurozone from retaliatory actions from Russia.

Euro Exchange Rates - Updated 18/09/2014)

The Euro to Australian Dollar exchange rate is trading up +0.07% at 1.43529 EUR/AUD.
The Euro to Canadian Dollar exchange rate is trading up +0.03% at 1.41515 EUR/CAD.
The Euro to Pound Sterling exchange rate is trading down -0.08% at 0.78922 EUR/GBP.
The Euro to New Zealand Dollar exchange rate is trading down -0.19% at 1.58380 EUR/NZD.
The Euro to Lira exchange rate is trading down -0.05% at 2.85979 EUR/TRY.
The Euro to US Dollar exchange rate is trading up +0.18% at 1.28718 EUR/USD.
The Euro to Rand exchange rate is trading down -0.26% at 14.14305 EUR/ZAR.

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