GBP EUR Forecast: The Pound to Euro Exchange Rate Weekly Outlook for November 2014

November 16, 2014 - Written by Tim Boyer

STORY LINK GBP EUR Forecast: The Pound to Euro Exchange Rate Weekly Outlook for November 2014

As the week started, the Pound Sterling to Euro exchange rate was trading in the region of 1.27 EUR but further direction was muted due to a lack of market-moving economic data releases.

The Euro was softer as traders looked ahead to the release of the latest Sentix Investors Sentiment report, which came in better than expected with a reading of -11.9, better than the -13.5 forecast.

Despite that, the GBP/EUR exchange rate remained higher.

Let's look at today's forex rates:

The Pound to Australian Dollar exchange rate today is converting -0.08 per cent lower at 1.78986 GBP/AUD.
The Pound to Canadian Dollar conversion rate is +0.06 pct higher at 1.76960 GBP/CAD.
The Pound Euro exchange rate converts +0.03 per cent higher at 1 GBP is 1.25155 EUR.
The Pound to Japanese Yen exchange rate today is converting +0.35 per cent higher at 182.87077 GBP/JPY.
The Pound to Norwegian Krone exchange rate is +0.05 pct higher with a conversion rate of 1 GBP equals 10.58948 NOK.

Pound to Euro Exchange Rate Outlook

Tuesday was another muted day for the GBP/EUR exchange rate due to a lack of market moving data releases from both the UK and Eurozone.

The Euro did however soften against the Pound, US Dollar as concerns over the strength of the Eurozone economy increased on the back of more poor data out of Italy, and Greece released in the preceding session.

Due to the lack of data releases, the Euro exchange rate saw little movement against most peers.

Early on Wednesday the Euro was softened against the majority of its major peers after data out of Germany showed that Wholesale prices in the nation declined sharply in October, raising fears that the region’s largest economy was heading towards a recession. Industrial Production data eased some of those losses by coming in better than forecast. In the afternoon, the Euro surged against Sterling after the Bank of England warned that UK inflation could dip below 1% over the coming six months. The bank also cut its growth forecasts for the UK economy and sparked a broad selloff of Sterling.

Above Forecast EU Inflation Sends GBP/EUR Lower

On Thursday, the Euro continued to advance against the Pound as early in the session it found support from the release of better than forecast inflation data out of France and Spain.

Inflation in Germany came in as forecast at 0.8% on a year on year basis.

The currency was also higher as economists awaited the release of the latest European Central Banks latest monthly report.

Euro vs Pound Strenthens on Friday

As the week ended, the Euro strengthened strongly against the Pound and managed to challenge the 80 level.

The single currency edged higher after data released early in the session showed that Germany’s GDP rose by 0.1% in the last quarter and the French economy grew by 0.3%, exceeding forecasts.

GDP data for the overall Eurozone came in better than forecast but further gains were limited as economists were not convinced over the health of the economy. Weak growth will not support employment and inflation remains at record lows.

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TAGS: Currency Predictions Daily Currency Updates Euro Forecasts