Pound Euro Forecast: GBP/EUR Exchange Rate To Head North

September 27, 2013 - Written by Tim Boyer

STORY LINK Pound Euro Forecast: GBP/EUR Exchange Rate To Head North

The Pound Sterling has registered healthy gains against the euro and the US Dollar on the day following comments from Bank of England Governor Mark Carney. However, an encouraging set of Confidence Surveys from the eurozone have taken the edge off the early gains for the Pound euro exchange rate (GBP/EUR).

The Pound to Euro exchange rate (GBP/EUR) is currently trading down by 0.18% at 1.1895 GBP/EUR. The Euro to Pound exchange rate is currently trading at 0.8407 EUR/GBP.

Before current Bank of England supremo Mark Carney took over the reins at The Old Lady of Threadneedle Street he held a well-earned reputation as an arch dove. His time at the Bank of Canada had been marked by a notoriously loose attitude towards monetary policy and investors’ expectations when he started at the Bank of England were that this would manifest itself in the form of more Quantitative Easing for the UK economy.

However, this soon changed when Carney came over to London. He made it clear to a Parliamentary select committee earlier this year that he did not necessarily believe more Quantitative Easing for Britain would be a good idea and he backed this up with an interview with the Yorkshire Post newspaper printed today. Carney emphatically told the northern England daily that he saw no need for further QE in the UK. The Pound climbed against the other majors as a consequence, sending the Pound euro exchange rate (GBP/EUR) up to the very top of its nine month range at 1.1957 earlier, while the Pound US Dollar exchange rate also gained ground, tipping the scales at an intraday high of 1.6132 earlier on.
Gains for the UK tender would surely have been of a greater magnitude were it not for yesterday’s disappointing downward revision for Q2’s GDP figures which revealed that economic activity expanded by a lower than anticipated year-on-year 1.3% during the three months to the end of Q2. Sterling is now forecast to trade with a NEUTRAL TO POSTIVE bias in the short to medium term.

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: Currency Predictions Dollar Pound Forecasts Euro Forecasts Euro Pou Forecasts