Euro to Pound Exchange Rate (EUR/GBP) Boosted Today; Sterling Euro Forecast Sees Strong Price Action Next Week

Modified: Friday, 22 November 2013 16:41 BST - Written by John Cameron

STORY LINK Euro to Pound Exchange Rate (EUR/GBP) Boosted Today; Sterling Euro Forecast Sees Strong Price Action Next Week

The Euro to Pound Sterling exchange rate (EUR/GBP) enjoyed a much-needed boost earlier today following the publication of the latest IFO Sentiment Index in Germany earlier today. The closely-monitored gauge of optimism in mainland Europe’s premier economy showed an increase from 107.4 in October up to 109.3 last month. This larger than anticipated rise provided a bout of sustained support for the single currency during early trading today which took the GBP EUR exchange rate down to as low as 1.1969 during the first half of the UK equities session.

Pronounced Price Action for GBP EUR Exchange Rate Next Week

With no further data releases of note for the remainder of this week’s trading session, the Pound to Euro (GBP/EUR) exchange rate is likely to drift during the hours leading up to the weekend shutdown. However, next week’s session is almost guaranteed to bring pronounced price action for GBP EUR with a raft of tier one data sets penned in for release from both the UK and the eurozone. Wednesday afternoon’s UK Q3 GDP data is eagerly anticipated – investors holding Sterling-denominated assets will be looking for the numbers to point to a continuation of this year’s pronounced improvement in the UK economy.

The Euro to Pound Exchange Rate is currently trading up 0.25% at 0.83451 EUR/GBP

Thursday’s session has the potential to provoke further market movement, with two key pieces of data set for release in Germany. November’s unemployment data from the Teutonic powerhouse could prove market-moving. A print below the anticipated showing of 6.9% for the overall level of German joblessness could send GBP EUR back up towards its 10-month high of 1.2048. Conversely, a showing of above the expected year-on-year 1.2% for last month’s German Consumer Price Index inflation data has the potential to send GBP EUR tumbling back down towards the 1.1800 threshold, given the market’s current levels of sensitivity towards the relationship between price rises and the European Central Bank’s monetary policy. Rising prices in Germany will alleviate the pressure which has been brought to bear on ECB President Mario Draghi to cut interest rates in an attempt to re-inflate the flailing eurozone economy.

Current Euro Exchange Rates (Currency:EUR) 22/11/2013 13:30 GMT

The Euro to Australian Dollar exchange rate is trading up +1.08% at 1.47547 EUR/AUD.
The Euro to Canadian Dollar exchange rate is trading up +0.6% at 1.42561 EUR/CAD.
The Euro to Swiss Franc exchange rate is trading down -0.07% at 1.23051 EUR/CHF.
The Euro to Hong Kong Dollar exchange rate is trading up +0.43% at 10.48787 EUR/HKD.

The Euro to Swedish Krona exchange rate is trading down -0.54% at 8.89407 EUR/SEK.
The Euro to Singapore Dollar exchange rate is trading up +0.49% at 1.69256 EUR/SGD.
The Euro to US Dollar exchange rate is trading up +0.42% at 1.35279 EUR/USD.

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TAGS: Currency Predictions Euro Forecasts Euro Pound Forecasts Pound Euro Forecasts