Pound to Euro Exchange Rate Crash Seen as Fears Grow about No UK Brexit Plans

November 15, 2016 - Written by Tim Boyer

STORY LINK Pound to Euro Exchange Rate Crash Seen as Fears Grow about No UK Brexit Plans

Pound Sterling News: Government Denial of Leaked Memo Fails to Reassure Panicked Investors

Pound Euro exchange rates have slipped during trading today to 1.15, though this is still up from last week’s starting lows.

The latest damage dealt to Sterling has seemingly come from the Government, where a leaked memo has alarmingly claimed that senior politicians have ‘no plan’ for Brexit.

Other issues raised were that forming such plans could take 6 months, which would cause the Government to miss its Article 50 trigger date target in late March.

Elsewhere, inflation in October has surprisingly fallen, though the general expectation is that this will rise rapidly in 2017.

Pound Sterling to Euro Forecast: GBP Losses may Expand Tomorrow if Wages Slow

In spite of the latest inflation rate dip, wage growth in September is still expected to cause notable movement for the Pound tomorrow due to the implications of positive inflation and falling incomes.

Other UK news to watch out for will include the September unemployment rate, which is predicted to rise from 4.9% to 5%, as well as the claimant count change for October.

Claims previously rose by 0.7k in September and unfortunately for Sterling, expectations are for another advance of 0.9k cases.

Euro to Pound Exchange Rate Climbs as Q3 Eurozone GDP Stays Positive

The Euro has found itself in high demand against the Pound during trading today, having advanced by 0.9% to a rate of 0.86 against the beleaguered GBP.

The latest Eurozone data has actually been mixed overall, though this has not prevented the single currency from appreciating. Part of this raised appeal has come from a collapse in the US Dollar’s value.

In GDP news, the second estimate for the Q3 growth rate remained positive on the quarter and year, though in Germany, the Q3 flashes both slumped considerably.

Euro Exchange Rate Volatility Forecast This Week on Inflation Rate Estimates

The Euro may crash back down against the Pound later on in the week, especially given Thursday’s forecasts for Eurozone data results.

Opening off movement will be the September construction output and October inflation rate stats; a slight rise has been forecast for output, but a monthly inflation rate dip is also expected from 0.4% to 0.2%.

On Thursday afternoon, the European Central Bank (ECB) monetary policy meeting accounts are due to be released; any signs of incoming policy easing in response to a Trump victory are expected to soften the single currency.

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TAGS: Pound Euro Forecasts