Pound to Euro OUTLOOK: GBP/EUR Exchange Rate mixed on Greek concerns

Modified: Wednesday, 10 December 2014 14:05 BST - Written by John Cameron

STORY LINK Pound to Euro OUTLOOK: GBP/EUR Exchange Rate mixed on Greek concerns

Currency News UK Presents Our Latest Pound Sterling to Euro Exchange Rate Forecast

The Pound was little changed against the Euro as both currencies were under pressure. The UK currency was under pressure from worse than forecast trade balance data and a warning from the British Chambers of Commerce.

The Euro on the other hand was under pressure from more weak economic data out of France and growing concerns over the political situation in Greece.

Euro Exchange Rates Today

The Euro to Australian Dollar conversion rate is -0.24 pct lower at 1.48939 EUR/AUD.
The Euro to Canadian Dollar conversion rate is +0.31 pct higher at 1.42178 EUR/CAD.
The Euro to Swiss Franc exchange rate today is converting +0.02 per cent higher at 1.20258 EUR/CHF.
The Euro to Pound rate is +0.01 pct higher at 0.78992 EUR/GBP.
The Euro to New Zealand Dollar exchange rate converts -0.19 per cent lower at 1 EUR is 1.60750 NZD.
The Euro to US Dollar exchange rate today is converting +0.04 per cent higher at 1.23935 EUR/USD.

The British Chambers of Commerce warned that a premature interest rate hike would pose a ‘huge risk’ to the UK economic recovery due to the nation’s reliance on mortgages and consumer spending and cut its growth forecasts for 2014 and next year.

The group trimmed its forecasts for economic growth in 2014 and the coming years, projecting a 3.0% expansion this year, 2.6% next year and 2.4% in 2016. In August, it had predicted growth of 3.2%, 2.8% and 2.5%, respectively.

‘Downgrades to our growth forecast are a warning sign that we still face a number of hurdles to securing a balanced and sustainable recovery. A sustainable, well-balanced economy can only be achieved if there is commitment from all political parties to long-term strategic planning, rather than the political short-termism that has plagued British growth prospects for too long. Our dependence on consumer spending and mortgages means that the UK economy is particularly sensitive to interest rates. Any short-term rate rises could present a huge risk to our economy’ said BCC Director General John Longworth.

Sterling saw muted support from a separate report, which showed that the nation’s trade balance deficit narrowed to its lowest level in seven months in October. According to the report released by the London based Office for National Statistics (ONS), the UK’s trade deficit narrowed from £2.8 billion to £2 billion. The country ran a £9.6 billion goods deficit, versus a £7.6 billion surplus on services.

The Euro meanwhile was under pressure from data out of France, which showed that industrial and manufacturing production in France, the Eurozone’s second largest economy fell more than expected in October.

Also putting pressure on the single currency was heightening fears over the political situation in Greece. The Greek stock market made its biggest loss on record after the Greek government surprised the markets by announcing that it would bring forward presidential elections. If Prime Minister Antonis Samaras fails to get support for his preferred candidate then under the nation’s constitution a general election will have to be called. Samaras is not expected to win a general election, instead the opposition and anti-EU bailout party SYRIZA is likely to sweep to power and put the bailout programme into jeopardy.

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