Currency News

Daily Exchange Rate Forecasts & Currency News

Pound Euro Rate Today: GBP EUR Climbs as Investors Buy Pound Sterling

December 12, 2014 - Written by John Cameron

Pound Sterling to Euro (GBP/EUR) Exchange Rate Outlook



gbp eur exchange rateThe GBP EUR exchange rate recorded good gains yesterday afternoon, but was the move driven by a collective decision from investors to buy Pound Sterling denominated assets, or was it driven by market participants’ choosing to sell euros?

Euro Rates Today:

The Pound to Euro exchange rate today is converting -0.51 per cent lower at 1.26184 GBP/EUR.
The US Dollar to Euro exchange rate converts -0.65 per cent lower at 1 USD is 0.80165 EUR.
The Swiss Franc to Euro conversion rate is +0.03 pct higher at 0.83268 CHF/EUR.
The Canadian Dollar to Euro exchange rate is -0.86 pct lower with a conversion rate of 1 CAD equals 0.69373 EUR.
The Hong Kong Dollar to Euro conversion rate is -0.64 pct lower at 0.10341 HKD/EUR.

Euro to Dollar rate Today



The answer may well be neither, as the major driver behind the move appeared to be a renewed weakening of the euro to US Dollar exchange rate (EUR/USD) following the publication of stronger than anticipated American shop sales data.

Advertisement
The closely-watched economic numbers sent the euro US Dollar exchange rate down to an intraday low of 1.2371 EUR USD late on, meaning that the world’s leading pair had lost 0.55% on the session. Perhaps not coincidentally, by the same point in the American equities trading day, the GBP EUR exchange rate had gained around 0.50% in value. The move was therefore attributable to arbitrage funding from speculators.

Pound Euro Forecast



However, investors’ apparent willingness to buy Pound Sterling assets may be tested during coming months thanks to a series of disparate factors. Analysts consistently judge the Manufacturing Output data for an economy to be the key determinant of future levels of economic growth in that economy. The disappointing UK Manufacturing Output figures for October, published earlier this week, which pointed to a month-on-month contraction of 0.7% in comparison to the previous month, suggest that the strength of the British economic recovery may be fading.

Chris Williamson of Markit certainly attests to this; he stated yesterday that, ‘although monthly figures are volatile, and many economists believe output bounced back in November, the numbers point to much slower growth than earlier this year.’ He went on to assert that, ‘the pace of expansion has moved sharply lower.’

If Williamson is correct, then the 1.3000 level which many analysts have been forecasting for the Pound Sterling to euro exchange rate may be a long way off and the pair may even peel back towards 1.2000 in the near term.
Like this piece? Please share with your friends and colleagues:

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.


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

Comments are currrently disabled