January 10, 2019 - Written by John Cameron
STORY LINK Pound to Euro Exchange Rate LIVE: GBP/EUR Static Despite Worst Christmas Trading Period in Decade
The Pound Sterling to Euro (GBP/EUR) exchange rate is static today and is currently trading within the region of €1.1079.
The Pound (GBP) remains steady against the Euro (EUR) despite the release of the UK’s BRC like-for-like retail sales figures for December which decreased by -0.7% – the worst Christmas trading period in a decade.
Paul Martin, the Head of UK Retail at KPMG, commented:
‘Growth in food did provide a glimmer of hope, being among the few categories to notice an uptick. . . However, the continued contrast in performance between the High Street and online remained evident in December – albeit 2018 did also see a continued slowdown in online retail sales.’
Brexit debates will continue today with Prime Minister Theresa May once again rallying to gain Parliament’s backing for her UK-EU withdrawal agreement, with the Business Secretary, Greg Clark, commenting:
‘We need to act to avoid a no-deal because I don't think there is anything remotely like a majority in Parliament that will tolerate this.’
The Euro was also left unmoved against the Pound today after the release of the French industrial output figures for November showed a worse-than-expected decrease by -1.3%, boding a weakening French economy.
The Euro has, however, been steadied somewhat by a weakening US Dollar (USD), with the two currencies having an inverse correlation, the Euro has managed to stabilise against the Pound despite a lack of notable data releases today.
Euro investors will be looking ahead to today’s publication of the Eurozone’s ECB monetary policy meeting accounts report, with any bullish notes potentially buoying the Euro to Pound exchange rate.
Pound Euro (GBP/EUR) Exchange Rate Steadies as Brexit Debates Heat Up
The UK opposition Labour leader Jeremy Corbyn is due to deliver a speech on Brexit today in which he is expected to tout a general election.
Theresa May will be holding a press conference at Downing Street with Japanese Prime Minister Shinzo Abe, who is expected to support May’s Brexit deal, with manufacturers Nissan, Toyota and Honda having recently warned the UK over additional costs on tariffs.
However, any signs of an increasing division between Parliament and the government today could see the Pound slip against the Euro, as Theresa May comes under increasing pressure since yesterday’s string of defeats – causing some Sterling investors to remain skittish.
GBP/EUR Forecast: Positive UK GDP Figures Could Bolster the Pound
Tomorrow will see a slew of data releases, with the publication of the UK’s manufacturing production figures for November expected to increase to 0.3% against October’s -0.9%, this could see Sterling increase against the Euro.
These will be followed by the release of the UK’s non-EU trade balance figures which are, however, expected to decrease.
However, if the publication of the UK’s GDP figures tomorrow show any signs of bullishness, this could further bolster the Pound.
EUR investors, meanwhile, will be awaiting tomorrow’s publication of the Eurozone’s ZEW survey on economic sentiment for January, with any signs of bearishness potentially strengthening the GBP/EUR exchange rate.
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TAGS: Euro Forecasts Pound Euro Forecasts Pound Sterling Forecasts