Euro to Pound Exchange Rate Slumps (EUR/GBP), Pound to NZ Dollar Forecast Fall

Modified: Wednesday, 6 November 2013 16:29 BST - Written by John Cameron

STORY LINK Euro to Pound Exchange Rate Slumps (EUR/GBP), Pound to NZ Dollar Forecast Fall

The Pound Sterling has given up ground against the euro following a bright start to the day for GBP EUR. Meanwhile, GBP NZD has dropped following strong jobs data in New Zealand. The Pound New Zealand Dollar exchange rate is currently trading down by 0.17% at 1.9154 GBP/NZD. The New Zealand Dollar Pound exchange rate is currently trading at 0.5221 NZD/GBP.

The Euro to Pound exchange rate slumped to 0.8381 earlier today following the publication of a weaker than anticipated set of September Retail Sales numbers from the eurozone. The shop sales figures for the month before last printed at an annualised 0.3% versus an expected showing of 0.6%, piling the pressure on an already down-at-heel euro.

However, investors holding euro-denominated assets did not have to wait for long until a positive came along to cancel out the tame retail sales numbers. The latest German Factory Orders stats, considered a reliable bellwether of the future prospects of the mainland European economy, printed well ahead of expectations to show an annualised increase of almost 8.0%. Such a positive showing from a key leading indicator of the health of the eurozone economy sent the GBP EUR exchange rate back down to below the 1.1900 threshold a short time ago.

Elsewhere, Sterling has lost ground against the New Zealand Dollar so far today thanks to the overnight publication of a strong set of domestic New Zealand labour market figures. The closely-watched jobs numbers for Q3 revealed that the overall level of unemployment in New Zealand had dropped from 6.4% in Q2 to 6.2% in the three months leading up to the end of September. The Kiwi bullied the Pound as a result, causing the GBP NZD exchange rate to tumble to 1.9121 during this morning’s European equities session. Further near-term losses are forecast for GBP NZD given the recent hawkish tone of Reserve Bank of New Zealand Governor Graeme Wheeler’s recent assertions that a hike in his nation’s key lending rate may be close at hand.

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TAGS: Currency Predictions Euro Forecasts Euro Pound Forecasts New Zealan Forecasts