GBP/EUR Forecast: Turbulence Predicted for Pound Sterling to Euro Exchange Rate Today

February 18, 2015 - Written by John Cameron

STORY LINK GBP/EUR Forecast: Turbulence Predicted for Pound Sterling to Euro Exchange Rate Today

Currency News UK Presents The Pound to Euro Forecast on Exchange Rate Markets

The Pound Sterling to euro exchange rate sprang to another new 7 ½ year high during early trading today following some encouraging data from the UK.

GBP EUR jumped to 1.3591 during the early part of the New York trading day as investors moved quickly to price-in a better than anticipated set of UK labour market numbers, published earlier today. The Office of National Statistics numbers revealed that the UK employment rate was 72.3% - its joint highest ever level. Meanwhile, the overall level of joblessness amongst the working-age population showed at a better than anticipated 5.7%. Another closely-monitored element of the overall jobs data is the Average Earnings (including bonuses) data; this printed at 2.1% for the three months to the end of December, well ahead of the pace of British price inflation. The increase in real take home pay in the UK provided the Pound with an additional fillip, and with UK economic participants having a greater monthly disposable income, analysts suggest that the domestic economic recovery may now gain traction.

The forward move for GBP EUR was driven partly by a renewed weakening of the single currency, as evidenced by the drop of 0.44% in the euro US Dollar exchange rate (EUR/USD) to 1.1354 this afternoon. This morning’s confirmation by a Greek official that the debt-addled Hellenic state will seek a 6-month extension of its current loan from the EU / ECB / IMF ‘Troika’ failed to sure-up support for the single currency. According to reports, Greece has stipulated that this will not be an extension of the nation’s current bailout agreement; investors appear to view this as a potential sticking point, with the eurogroup of Finance Ministers stating earlier in the week that it was unwilling to give in to Athens’ demands for a complete re-hashing of its terms.

Looking ahead, tomorrow afternoon brings the publication by the European Central Bank of the minutes of its most recent monetary policy meeting. The memos will be scoured for any allusion to Greece’s current debt woes and the likely upshot of the ongoing situation. Analysts forecast that the relative value of the euro will alter as a consequence.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

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