GBP/EUR Forecast: Pound to Euro Exchange Rate Dips on Euro Zone Data; Outlook Higher Tomorrow

Modified: Monday, 9 December 2013 17:15 BST - Written by Tim Boyer

STORY LINK GBP/EUR Forecast: Pound to Euro Exchange Rate Dips on Euro Zone Data; Outlook Higher Tomorrow

The Euro exchange rate (currency: EUR) received a double boost earlier today, with the publication of a strong set of German trade data and news of an upgrade to its domestic 2014 growth forecast from the Bank of France.

Although October’s German current account figure was slightly below September’s counterpart number, it still managed to significantly beat analysts’ expectations to show a more than healthy surplus of €19.1bn. To add to the positive tone of the release, September’s figure was upgraded to a whopping €20.0bn.

Matters improved for the single currency later this morning when France’s central bank announced that it expects the Gallic economy to expand by a quarterly 0.5% during the three months to the end of December. Although this was only a slight increase from the BoF’s initial forecast of 0.4%, the minimal increment suggests that the economic climate is improving in France.

Euro Zone Data & Growth Forecast Sends Pound to Euro Rate Down

The euro pushed ahead against Sterling in response to the dual development from the eurozone, sending the Pound euro exchange rate (GBP/EUR) all the way down to an intraday low of 1.1906. The pair now looks to have well and truly left rates above the 1.2100 threshold behind. However, tomorrow is another day. With a raft of UK Industrial Production and Manufacturing numbers set for release at 0930hrs GMT tomorrow, there appears to be room for fluctuation for the pair during tomorrow morning’s session.

Other highlights to look for tomorrow for investors needing to trade on the GBP EUR pair include finalised Q3 Gross Domestic Product data from Italy, due for publication at 1000hrs GMT tomorrow and the release of this month’s edition of the closely-watched NIESR Gross Domestic Product estimate of the UK economy at 1500hrs. A showing above last month’s print of 0.7% has the potential to send the GBP EUR exchange rate back through the 1.2000 threshold once more.

Key Euro Exchange Rates (29/12/2013 17:15 GMT)

The British Pound to Euro exchange rate is trading up +0.36% at 1.19548 GBP/EUR.
The US Dollar to Euro exchange rate is trading down -0.14% at 0.72859 USD/EUR.

The Euro to Australian Dollar exchange rate is trading up +0.31% at 1.51013 EUR/AUD.
The Euro to Canadian Dollar exchange rate is trading up +0.01% at 1.46056 EUR/CAD.
The Euro to Swiss Franc exchange rate is trading up +0.03% at 1.22348 EUR/CHF.
The Euro to British Pound exchange rate is trading down -0.36% at 0.83648 EUR/GBP.
The Euro to New Zealand Dollar exchange rate is trading up +0.35% at 1.65952 EUR/NZD.
The Euro to US Dollar exchange rate is trading up +0.14% at 1.37252 EUR/USD.

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