Euro to Pound FX News: EUR/GBP Exchange Rate Roundup & Forex Forecast

February 1, 2015 - Written by James Fuller

STORY LINK Euro to Pound FX News: EUR/GBP Exchange Rate Roundup & Forex Forecast

The Euro to Pound exchange rate spent much of the last week under pressure due to increasing concerns over the performance of the Eurozone economy and geopolitical concerns.

At the start of the week, the Pound Euro exchange rate advanced to its best conversion level in more than seven years after the anti-austerity Syriza party won the Greek general election. Economists are nervous that the result could lead to Greece altering its bailout conditions and perhaps lead to the nation leaving the Eurozone altogether. The single currency also came under pressure from data which showed that business confidence in the Netherlands and Germany rose by a smaller than forecast level in January.

Latest Exchange Rates - Revised 02/02/2015 21:00 GMT

The Euro to Australian Dollar exchange rate today is converting -0.05 per cent lower at 1.45268 EUR/AUD.
The Euro to Canadian Dollar conversion rate is -0.56 pct lower at 1.42684 EUR/CAD.
The Euro to Swiss Franc exchange rate today is converting +0.96 per cent higher at 1.05186 EUR/CHF.
The Euro to Pound Sterling conversion rate is +0.67 pct higher at 0.75458 EUR/GBP.
The Euro to New Zealand Dollar exchange rate today is converting -0.32 per cent lower at 1.55173 EUR/NZD.
The Euro to US Dollar exchange rate converts +0.28 per cent higher at 1 EUR is 1.13384 USD.

As the session progressed, the Euro experienced a brief rally as traders said that they were optimistic that a deal would be reached between the New Greek government and the Troika of lenders, which is comprised of the European Central Bank, European Union and International Monetary Fund. Despite the hopes that a deal will be reached, the single currency will remain under pressure, as traders will be jittery as Syriza attempts to negotiate Greece’s €240 billion international bailout.

UK GDP data released on Tuesday softened the Pound slightly as it showed that Britain’s economic recovery slowed in the fourth and final quarter of 2014. GDP growth slowed to 0.5% on a quarterly basis, below forecasts for a figure of 0.6%. On a year on year basis, however the economy was shown to have grown at its fastest pace since 2007.

‘The Eurozone is potentially entering a new phase of political uncertainty arising from the anti-austerity Syriza party victory in Greece. The upcoming general election in the UK also poses a threat to stability in the event of an inconclusive outcome. There’s also the possibility of financial market stress if the US starts to hike interest rates later this year, and geopolitical risks such as the escalation of the Russian-Ukraine crisis likewise pose a threat to global stability,’ said Chris Williamson, chief economist at Markit.

As the week ended, the Euro went back onto the retreat as data showed that inflation across the Eurozone fell to its lowest level since 2009. The annual rate of inflation across the region was -0.6%, adding to the -0.2% recorded in December.

Heavy losses for the currency were limited however, as economists saw the figure as justifying the ECB’s announcement of a quantitative easing programme worth €1.1 trillion.

Euro to Pound Sterling Forecast

Looking ahead to next week, the EUR/GBP exchange rate will likely experience movement on Thursday when the BoE announces its latest interest rate decision

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TAGS: Currency Predictions Daily Currency Updates Euro Forecasts