Pound to Euro Exchange Rate Forecast 2014 / 2015: GBP vs EUR Predictions Come True

October 15, 2014 - Written by John Cameron

STORY LINK Pound to Euro Exchange Rate Forecast 2014 / 2015: GBP vs EUR Predictions Come True

Currency News UK presents our latest 2014 / 2015 pound to euro forecast, exchange rate news and FX predictions.

Yesterday morning’s official government figures revealed that the rate of British price rises has slumped to its lowest level for five years during September and the Pound Sterling (GBP) has slumped as a consequence.

The Pound euro exchange rate dipped to an intraday low of 1.2566 GBP EUR as a result, while the Pound fell to as low as 1.5899 versus the US Dollar.

Before we take a further look below, let's first see where the EUR stands in today's FX markets:

The Pound to Euro exchange rate converts +0.15 per cent higher at 1 GBP is 1.25888 EUR.
The US Dollar to Euro conversion rate is -0.02 pct lower at 0.79082 USD/EUR.
The Swiss Franc to Euro exchange rate converts -0.04 per cent lower at 1 CHF is 0.82806 EUR.
The Canadian Dollar to Euro exchange rate today is converting -0.46 per cent lower at 0.69581 CAD/EUR.

Don't forget if you are waiting to find the best exchange rate for a currency transfer, then you're best bet is to set up your future rate order with a foreign exchange broker!

UK Inflation Shocker Hits Pound Sterling GBP

The UK Consumer Price Index data revealed a drop to a lowly 1.2% last month, causing investors to push back their estimations for the timing of the next UK interest rate hike.

The minutes of the past two meetings of the Bank of England’s Monetary Policy Committee revealed that two policymakers had voted in favour of an immediate increase in interest rates.

However, yesterday’s British inflation numbers, in combination with the news that the price of a barrel of Brent crude oil had dropped to $86.17 – its lowest level since 2010 – increased the likelihood that the Bank of England may not be able to tighten its policy until 2016.

BoE Interest Rate Rise Predictions Pushed Back

Daragh Maher of HSBC summed up the mood amongst investors, stating that, ‘the market spent the first half of the year getting excited about how quickly the BOE might have to hike.

Now they’re having to delay those expectations.

The real surprise is that there’s not been an even bigger Sterling selloff in response to this sizable downside surprise.’

Euro to Pound Exchange Rate Outlook: German GDP Downgrade

Rate The reason the Pound did not incur greater losses against the single currency on the day were plain to see; for all the potential headwinds which the UK economy faces, the eurozone is in a far weaker position.

Yesterday’s session saw the German government slash its 2014 Gross Domestic Product growth forecast from an annualised 1.8% down to a dismal 1.2% and the market moved quickly to express its displeasure.

Although the EUR gained a small amount against GBP, the single currency plunged against the USD, sending the exchange rate down to 1.2641.

Analysts forecast that there could be further losses to come for the EUR GBP and EUR USD exchange rates.

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