Euro to Pound Sterling Exchange Rate Weekly Roundup April 7 -10

April 13, 2015 - Written by David Woodsmith

STORY LINK Euro to Pound Sterling Exchange Rate Weekly Roundup April 7 -10

Euro to Pound Sterling Weekly Roundup & Forecast – April 7 -10

With the UK, markets being closed on Monday due to the Easter holidays the GBP/EUR exchange rate saw little in the way of movement at the start of the week. The rest of the week was also fairly muted due to a large number of market participants still away on holidays. The only data released on the day was from Spain, which showed that consumer confidence came in below forecasts.

On Tuesday, the Euro began the session firmer against several peers including the Pound Sterling due to the publication of positive economic data out of Germany and the wider Eurozone. Composite PMI data out of the currency bloc’s largest economy came in below forecast, as did the Eurozone Composite index. Despite coming in below expectations the data showed that the region was improving in most sectors were in expansion territory.

As the session progressed, the Pound Sterling strengthened as a Markit/CIPS Services PMI report came in above expectations. The PMI rose to a reading of 58.9 in March, up from the preceding months figure of 56.7 and better than the 57.0 expected. The positive PMI added to others for the manufacturing and construction sectors to suggest that the UK economy is continuing to strengthen.

The Euro weakened further in Wednesday’s session against its major peers as industrial production data from Germany came in below forecasts. On an annual basis, industrial production in the Eurozone’s largest economy fell by -0.3%. Germany’s balance of trade surplus for February was also smaller than expectations. The data suggests that the region’s economy remains under pressure. On a monthly basis Eurozone, retail sales came in as forecast.

Early on Thursday the Pound softened against the single currency and other peers after domestic data showed that the UK’s trade balance deficit widened. The U.K. Office for National Statistics reported that the country's trade deficit widened to £10.34 billion in February from £9.17 billion in January, whose figure was revised from a previously estimated deficit of £8.41 billion. Analysts had expected the trade deficit to hit £9.00 billion in February. As the session progressed, the Bank of England left interest rates unchanged at 0.5%, a decision that was widely expected. The Euro then softened, as investors grew worried by the Greece situation.

The single currency weakened further as the Times newspaper reported that the Eurozone was drawing up plans to kick Greece out of the Eurozone as they prepare for the country to be declared bankrupt.

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