Pound Euro FX - Weekly GBP/EUR Exchange Rate Update, Forecast & Latest Sterling Conversions

September 20, 2014 - Written by Toni Johnson

STORY LINK Pound Euro FX - Weekly GBP/EUR Exchange Rate Update, Forecast & Latest Sterling Conversions

Currency News UK - End-of-week British pound to euro focused exchange rate outlook, comment, forecasts, and GBP/EUR currency conversion after the Scottish Referendum dominates the FX news

At the start of the week, the Pound was able to hold onto gains against the Euro after it received some support on Monday morning from the release of a report by the Federation of Small Businesses (FSB).

In its quarterly survey three-fifths of firms said that they expect to experience growth over the coming year. International bodies from the International Monetary Fund to the OECD have said that the UK is likely to remain the fastest growing developed economy for the near future.

Euro rate starts week under pressure

The Euro remained under heavy selling pressure on Monday against all of its major peers as concerns over the strength of the Eurozone economy continues to weigh upon sentiment. News that an anti-Euro party won two eastern state parliaments in Germany caused concerns that support for the single currency is waning in the Eurozone’s largest economy.

Tuesday saw the Pound weaken against its major peers economists accurately predicted that the sessions UK inflation data would show a fall, which will in turn ease pressure on the Bank of England to raise interest rates. Analysts forecasted that Consumer Prices fell last month from 1.6% to 1.5%, a move away from the BoE’s target of 2%. Concerns over Thursday’s Scottish referendum vote are also weighing upon the currency.

The Euro came under further pressure on Tuesday as the latest ZEW Economic Sentiment data for Germany and the wider region, which shows that confidence across the 18-member region, declined sharply in September. The currency was also softened by concerns that a tentative ceasefire in Ukraine could collapse after renewed fighting at Donetsk airport.

Pound Sterling makes gains versus the Euro

Midweek, the Pound to Euro exchange rate managed to make more gains on Wednesday as investors awaited the release of minutes from the Bank of England’s latest policy meetings. The BoE minutes showed no change from the previous month but unemployment fell to 6.2% and the number of UK citizens claiming unemployment benefits fell sharply.

The Euro softened on concerns that the Ukrainian ceasefire is coming under intense strain as pro-Russian rebels questioned further peace talks with the Ukrainian government. Some rebel leaders called for a renewed offensive as fighting continues near Donetsk. The previous days disappointing economic sentiment data for Germany and the wider Eurozone was also weighing.

On Thursday, the Pound advanced against most of its most traded peers as Scotland took to the polls to decide the fate of the United Kingdom. A victory for the No campaign was expected as several polls showed a lead for the pro-union side. Retail sales data took a backseat to events in Scotland.

As the session progressed on Friday the Pound Euro exchange rate advanced to the best conversion levels seen in two years as the Scots voted 'no' in the referendum.

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TAGS: Daily Currency Updates Euro Forecasts Euro Pound Forecasts Pound Eu Forecasts