Pound to Euro FX Forecast - Latest Sterling Exchange Rate and GBP to EUR Predictions & Conversions

September 30, 2014 - Written by John Cameron

STORY LINK Pound to Euro FX Forecast - Latest Sterling Exchange Rate and GBP to EUR Predictions & Conversions

Currency News UK: Read the latest currency outlook and exchange rate forecast for the British Sterling (GBP) and the Pound to euro conversion (GBP EUR) below.

Yesterday’s trading session brought a slew of Pound Sterling negative developments and data releases which are likely to determine price action for the UK tender into the medium term.

A quick look at today's Pound and Euro conversions:

- The pound to euro exchange rate is +0.4 per cent higher at 1.28493.
- The pound to dollar exchange rate is -0.24 per cent lower at 1.62024.
- The euro to pound exchange rate is -0.4 per cent lower at 0.77825.
- The euro to dollar conversion rate is -0.63 per cent lower at 1.26096.

The news that a massive majority of Britain’s captains of industry want the UK to remain part of the European Union was perhaps unsurprising.

A survey from the manufacturers’ organisation EEF, published yesterday, found that only 7% of respondents wanted Britain to break away from the European Union.

The gauge of opinion found that as many as nine out of ten larger manufacturing firms wanted the status quo to remain, with the UK staying a member state of the EU.

The difficulty of this situation is that recent polls suggest that a much lower percentage of UK economic participants share these business leaders’ view.

With the Conservative party promising the British electorate a referendum on the UK’s future membership of the EU should it win a majority in next year’s general election, the Pound Sterling (currency:GBP) could be in for a rough ride in the medium term.

On the same theme, the widely-respected Ernst & Young Item Club issued a report today which suggested that domestic consumers are likely to face another three years of budgetary pressure, with no real increase in wages.

Put together with the experience endured by most UK consumers since the global credit crisis of 2008, this will mean that British economic participants will have endured a ‘lost decade’ of economic hardship, during which time living standards will have dipped significantly.

Hardly good news for the Pound Sterling (currency:GBP).

Today's pound to euro exchange rate forecast:

Looking ahead, this morning’s highlight in the global currency markets comes in the form of the latest set of German unemployment data, which is expected to show that the overall rate of joblessness in the euroland’s number one economy has remained static at 6.7%.

Given the soft tone of recent Teutonic data releases, including a highly disappointing set of Q2 GDP data, it would not be a great surprise if the figure showed at a higher level than this.

If this proves to be the case, then analysts forecast that the Pound euro exchange rate to climb to a fresh 26-month high above 1.2845 GBP/EUR.

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