Euro to Pound Exchange Rate: EUR/GBP Forecast To Rise Today as Germany Coalition Talks Progress

Modified: Monday, 18 November 2013 08:59 BST - Written by John Cameron

STORY LINK Euro to Pound Exchange Rate: EUR/GBP Forecast To Rise Today as Germany Coalition Talks Progress

Progress in Germany’s coalition talks could send the Euro Pound exchange rate (EUR GBP) higher. Meanwhile, market participant will be looking closely at this afternoon’s US housing data for clues on the future direction for GBP USD.

Euro Exchange Rate 10 Month High at Risk

The Pound Euro exchange rate (GBP/EUR) ended last week’s session trading a cent below its 10-month high of 1.2048, but news from Germany puts the pair’s gains of the previous seven days at risk. German Chancellor Angela Merkel announced during the weekend currency market shutdown that she expects to have a coalition agreement in place by 27th November – a move which would signal the end of the power vacuum which has been present in the eurozone’s leading nation in the weeks following this autumn’s election.

Although Merkel’s Christian Democrats secured by far the largest slice of the votes amongst the Teutonic electorate in Germany’s recent election, the failure of their preferred coalition partner to win a single seat lead to an awkward inter-regnum. Support for the single currency has faltered at times since the popular ballot in Germany, but the weekend comments from Merkel would appear to have the potential to trigger renewed support for the single currency. In such a scenario, look for the GBP EUR exchange rate to drop back into the 1.1700s.

US Housing Market Activity/Prices Could Boost Dollar Exchange Rate

Elsewhere, this afternoon’s NAHB Housing Market Index survey is expected to show that transactional activity and prices have both increased in the US housing market this month. If the figures do indeed pan out this way, then renewed support could be possible for the US Dollar. Last week’s session was a disappointing one for the Greenback following comments from Janet Yellen, the next head of the US Federal Reserve, to the Senate banking committee. With the US housing sector having originally plunged the global economy into crisis in 2007/08., many analysts are suggesting that the world’s premier economy will not have truly healed until the key sector of America’s economy shows signs of a sustained improvement.

Current Euro Exchange Rates (Currency:EUR)

The Euro to Australian Dollar exchange rate is trading down 0.36% at 1.4338 EUR/AUD.
The Euro to Canadian Dollar exchange rate is trading down 0.03% at 1.4070 EUR/CAD.

The Euro to Pound Sterling exchange rate is trading down 0.05% at 0.8364 EUR/GBP.
The Euro to New Zealand Dollar exchange rate is trading down 0.38% at 1.6092 EUR/NZD.
The Euro to US Dollar exchange rate is trading up 0.13% at 1.3499 EUR/USD.

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