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FX ALERT: Near-Term Predictions for Euro to Sterling Exchange Rate: EUR GBP Deteriorates

July 29, 2015 - Written by James Fuller

German Employment, Inflation Data Ahead - Will GBP/EUR Return to Best Rate?



The Pound Sterling to Euro exchange rate maintained a stronger position on Wednesday as rumblings from Greece limited demand for the common currency. Today's German jobs and consumer price figures could cause additional currency market movement and if the figures disappoint, we could see the Pound approach recent eight-year highs.

Earlier...

Pound Sterling (GBP) Exchange Rate Trading Supported by UK Mortgage Data



Good Mortgage Approvals data for last month and a higher than anticipated showing from this morning’s UK data helped the Pound Sterling (currency : GBP) record strong gains against most of the other sixteen most actively traded global currencies on the day today. The Pound euro exchange rate climbed to an intraday high of above the 1.4200 GBP EUR level, while the Pound Sterling to US Dollar exchange rate pushed on towards the 1.5700 GBP USD threshold as investors priced-in an increased likelihood that the Bank of England (BoE) will indeed be hiking its headline rate of interest at the turn of the year.

FOMC Interest Rate Announcement Expected to Drive Currency Market Movement, USD Could Fall against GBP, EUR



Looking ahead, the main risk event on the horizon comes in the near-term is provided by this evening’s Federal Reserve FOMC monetary policy announcement. Analysts consider a US interest rate massively unlikely for this month; futures markets are pricing in an outside chance of an American rate increase for September, but a hike at December’s meeting is considered the most probable next move from the Fed. Analysts forecast that any further confirmation in the Fed’s accompanying statement that rates will be on the march Northwards this year would send the Pound Sterling US Dollar exchange rate tumbling downwards towards the 1.5000 GBP USD threshold once more.

German Inflation Data Scheduled for Release Tomorrow, Predicted to Impact Euro (EUR) Exchange Rate Trading



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Looking ahead, tomorrow morning’s German labour market statistics are expected to be market-moving. The overall level of joblessness in the Teutonic powerhouse economy is expected to have remained static at 6.4% last month – anything below this and the euro (currency : EUR) is likely to claw back some of its near-term losses against the Pound. Germany hogs the limelight in tomorrow’s data roster, with the afternoon session bringing the publication of the euroland giant’s latest Consumer Price Index inflation data. A year-on-year showing of 0.3% is expected for the headline statistic and such a result, hinting that mainland Europe is leaving behind fears of a damaging bout of deflation taking hold, is also forecast to help the euro to Pound Sterling exchange rate EUR GBP.

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