Pound to Euro Forecast: GBPEUR Exchange Rate Forecast Remains Positive

May 7, 2015 - Written by John Cameron

STORY LINK Pound to Euro Forecast: GBPEUR Exchange Rate Forecast Remains Positive

A strong survey of the UK services sector, published yesterday morning, was not enough to stop the Pound Sterling to euro exchange rate slumping to its lowest level since 12th February a short time ago.

The closely-monitored UK Markit/CIPS Purchasing Managers’ Index for last month showed at 59.5 versus analysts’ expectations of a 59.5 result.

This outcome was an improvement from March’s print of 58.9, and represented the fastest pace of services growth for eight months, suggesting that Britain’s economic recovery is picking up pace. The combined tertiary industries comprise around 75% of the domestic economy, so the result bodes well for Q2 UK GDP numbers, out during the middle part of Summer.

British Pound Climbs vs Euro Exchange Rate

The Pound to Euro (GBP EUR) exchange rate climbed to as high as 1.3573 on the day following the go-ahead UK figures, but the pair has since peeled back to trade down to as low as 1.3427.

The move was fuelled by improved noises coming out of Greece which helped prop up support for the shared currency. Controversial Greek finance minister Yanis Varoufakis was bullish in his assessment of the current situation, stating following a meeting with Italian FinMin Carlo Padoan, that, ‘we had a very fruitful and intense exchange of views on the best ways to make the eurogroup next Monday a platform to enter into the kind of agreement between Greece and our partners which not only resolves the current negotiations but will lead to a period after June that will allow the Greek economy to recover and grow again.’

The markets were already in a receptive mood thanks to the revelation during early trading that Greece had made its latest debt repayment of €200m worth of interest to the International Monetary Fund. The news staves off the possibility of an imminent financial meltdown in Athens, but the war is not yet won. Analysts warned that Greece may not be liquid enough to pay its next debt instalments due at the end of this month. For this reason, and in spite of tomorrow’s highly uncertain UK General Election, the forecast for the Pound Sterling euro exchange rate remains positive GBP EUR.

Exchange Rates Today:

The Pound to Australian Dollar conversion rate is -0.17 pct lower at 1.91269 GBP/AUD.
The Pound to Canadian Dollar conversion rate is +0.01 pct higher at 1.83517 GBP/CAD.
The Pound to Swiss Franc exchange rate today is converting -0.88 per cent lower at 1.38459 GBP/CHF.
The Pound to Euro exchange rate converts -0.47 per cent lower at 1 GBP is 1.33764 EUR.
The Pound to Japanese Yen exchange rate converts -0.32 per cent lower at 1 GBP is 181.37419 JPY.
The Pound to New Zealand Dollar exchange rate converts -0.13 per cent lower at 1 GBP is 2.03348 NZD.
The Pound to US Dollar exchange rate is -0.29 pct lower with a conversion rate of 1 GBP equals 1.51951 USD.
The Pound to South African Rand exchange rate converts +0.45 per cent higher at 1 GBP is 18.38214 ZAR.

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