Euro to Pound Forecast: EUR/GBP Exchange Rate Weekly Analysis, Predictions & Conversions

Modified: Tuesday, 4 November 2014 11:16 BST - Written by James Fuller

STORY LINK Euro to Pound Forecast: EUR/GBP Exchange Rate Weekly Analysis, Predictions & Conversions

The Euro exchange rate (EUR) began the week making gains against several major peers including the Pound (GBP) and US Dollar (USD) after the results of stress tests on European banks came in better than expected.

The stress tests painted a brighter picture than had been expected but Italy, Cyprus and Greece continue to be of concern.

The Euro softened against the US Dollar as data showed that business confidence in Germany fell to its lowest level since December 2012, adding to fears over the nation’s growth prospects in the fourth quarter.

Here are the latest conversion rates for your reference:

The Euro to Aus Dollar conversion rate is 1.42337 EUR/AUD.
The Euro to Canadian Dollar exchange rate is 1 EUR equals 1.41102 CAD.
The Euro to Pound exchange rate is 1 EUR equals 0.78299 GBP.
The Euro to NZ Dollar exchange rate converts at 1 EUR is 1.60784 NZD.
The Euro to Dollar rate today converts at 1 EUR is 1.25241 USD.

Pound to Euro Rate Softens

Due to a lack of economic data, releases at the start of the week the Pound to euro softened slightly after the single currency received support from the results of stress tests on European banks. Sterling did come under some pressure later in the session after the latest CBI Reported Sales report showed a fall in October.

The GBP eased against the EUR and USD due to reported sales figures, the currency was also weighed upon by other events, in particular the news that Lloyds Banking Group has been fined another £900 million for miss-selling loan insurance.

The bank also announced plans to axe 9,000 jobs and close 150 branches. The building row between the UK government and the EU over a bill of €1.7 billion also weighed.

The single currency managed to recover some ground on Tuesday after ECB chief economist Peter Praet told a Belgian newspaper that the bank does not see any sign of deflation or recession in the currency bloc. Data released early in the session once again weighed as consumer confidence in France held steady but Spanish retail sales fell more than forecast in September.

EUR Under Pressure vs GBP and USD

The Euro remained under pressure against most major peers and the Pound managed to push back above the 1.27 level.

Economic data released out of Spain widely matched expectations.

German unemployment restrained further declines by showing that unemployment dropped by 22,000 in October.

In the afternoon of Thursday’s session, the EUR went back onto the retreat as eagerly anticipated German inflation data came in below economist expectations.

As the week ended the Euro fell sharply against its major peers after data showed that German retail sales made their biggest decline in more than seven years in September, heightening fears that the Eurozone’s largest economy is sliding towards recession.

The poor data added to Thursday’s weak inflation data.

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TAGS: Currency Predictions Daily Currency Updates Euro Forecasts