Pound Euro Forecast: Will GBP EUR Exchange Rate Fall On Tomorrow?s UK Inflation Data?

Modified: Monday, 17 February 2014 17:12 BST - Written by Minesh Chaudhari

STORY LINK Pound Euro Forecast: Will GBP EUR Exchange Rate Fall On Tomorrow?s UK Inflation Data?

European Central Bank governing council member Ewald Nowotny spoke earlier today and he made some interesting comments and observations regarding the current state of the eurozone economy.

The Austrian policymaker, who was speaking in London this morning, suggested that inflation in the euro area might remain below 2.0% until at least 2016 and backed this up by confirming that he expected the region’s interest rates to remain low whilst the rate of price rises remained below this threshold. Nowotny also ominously stated that there is no current market expectation of a break-up of the euro. The Austrian economist heaped further pressure on the single currency when he stated that the ECB continues to discuss a wide range of potential policy measures aimed at promoting growth and employment.

The market did not appear impressed by what the ECB policymaker had to say and the Pound euro exchange rate (GBP/EUR) continues to hold at just below its 13-month high in the middle 1.2200s this morning.

Elsewhere, the Japanese Yen has struggled once again during today’s session following the publication of a stunningly poor set of Q4 Gross Domestic Product figures overnight. The numbers revealed that Japan’s flailing economy expanded at a paltry year-on-year level of 1.0% during the final three months of last year – well below analysts’ expectations of a showing of 2.8%. The Pound Yen exchange rate (GBP/JPY) has settled above the 170.00 threshold as a consequence and the shift out of Yen-denominated assets may be set to continue if weak data sets continue to emanate from Asia’s second economy.

Looking ahead, UK Consumer Price Index inflation figures, due out tomorrow morning, are the next risk event of note. If they show that the British rate of price rises has fallen below the government’s target of 2.0%, then expect the Pound to give up ground against the other major global currencies.

For futher exchange rate forecasts, live currency converters or to compare exchange rates for an international money transfer please refer to the main Currency News UK website.

Important Pound Sterling / Euro Exchange Rates (Updated: 17:00 GMT 17/02/2014)

The Pound Sterling to Euro exchange rate is trading down -0.41% at 1.21828 GBP/EUR.
The Euro to Australian Dollar exchange rate is trading up +0.31% at 1.51755 EUR/AUD.

The Euro to Pound Sterling exchange rate is trading up +0.41% at 0.82083 EUR/GBP.
The Euro to New Zealand Dollar exchange rate is trading up +0.18% at 1.63878 EUR/NZD.
The Euro to US Dollar exchange rate is trading up +0.03% at 1.37078 EUR/USD.
The US Dollar to Euro exchange rate is trading down -0.03% at 0.72951 USD/EUR.

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