Currency News

Daily Exchange Rate Forecasts & Currency News

GBP EUR Exchange Drops despite Government Defeat in Supreme Court Case

January 24, 2017 - Written by James Fuller

The British Pound to Euro exchange rate extended its daily gains on Wednesday afternoon and headed further above the level of 1.17. GBP traders firmed in anticipation that the UK government would publish a Brexit ‘white paper’.

The Euro, on the other hand, became jittery after Ted Malloch, tipped to be US President Trump’s EU ambassador, stated that the Euro currency could fail within the next 18 months.

[Previously Updated 25/01/2017]

Confidence in the Pound recovered on Wednesday morning, spurred by hopes of greater parliamentary scrutiny of the government’s Brexit plans.

This allowed the Pound to Euro exchange rate to regain lost ground, trending higher in the region of 1.1702, as investors piled back into Sterling.

[Previously updated 24/01/2017]

The GBP EUR exchange rate slumped on Tuesday morning as the UK Supreme Court finally released its verdict on whether the government has the power to trigger Article 50.

Pound Euro (GBP EUR) falls as Scottish MP’s Denied Brexit Vote



Advertisement
The Pound Euro (GBP EUR) exchange rate unexpectedly slid today despite the UK Supreme Court ruling against the government in its Brexit appeal.

While investors were pleased by the ruling - which prevents the government from triggering Article 50 without a parliamentary vote - the decision to deny devolved governments the right to vote caused Sterling sentiment to sour.

This will stop the SNP MPs from being able to vote against the Brexit bill and opposing Theresa May’s plans to leave the single market and with Labour set to back the vote, the SNP would have made up a sizable portion of the opposition.

This also increases the likelihood of another Scottish referendum on independence after the nation overwhelmingly voted to remain in the EU. As Sturgeon explained;

‘This raises fundamental issues above and beyond that of EU membership. Is Scotland content for our future to be dictated by an increasingly right-wing Westminster government with just one MP here – or is it better that we take our future into our own hands?’

Investors are also worried that even if MPs seek to make amendments to May’s plans, the PM will not be willing to back down over her roadmap for 'Brexit', offering a 'take it or leave it' it deal to MPs.

Euro Gains Muted by Mixed PMI Readings



The Euro’s attempts to capitalise on the Pound’s weakness were hindered somewhat today by the release of some mixed PMI data from Germany.

While Germany’s manufacturing beat expectations that it would slide in January as it rose from 55.6 to 56.5, Germany’s private sector was unable to achieve the same results as Markit’s reading showed that services tumbled from 54.3 to 53.2 over the same period.

The slump has been attributed to the sharp rise in costs with the uptick in oil and other commodities applying pressure to businesses, at a time when the Euro is notably down against the US Dollar (USD).

GBP EUR Exchange Rate Forecast: UK GDP Report Ahead



The GBP EUR exchange rate may tumble even further on Thursday as the UK releases its GDP report for 2016, with a predicted slowdown in the fourth quarter likely to cause growth to slide to 2.1%, down from 2.2% in 2015.

Meanwhile, the Euro may be strengthened by tomorrow’s German Business Climate reading, with Ifo expected to report that business sentiment rose from 111 to a near three-year high of 111.2 in January.


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: Daily Currency Updates Euro Forecasts Pound Euro Forecasts

Comments are currrently disabled