Pound (GBP) sees minor losses against the Euro (EUR), following a marathon meeting of EU leaders.
UPDATE Friday 10:20 BST: Earlier this morning, it was announced that EU leaders had managed to thrash out a working arrangement on how migration will be managed.
This Euro-boosting news has been seen as a pressure release for nations such as Germany and Italy, which have been the heavily affected by the ongoing migrant crisis.
Domestically, there has been positive UK news today but this hasn’t been enough to push the GBP/EUR exchange rate up.
Finalised UK GDP stats for Q1 2018 have printed at 0.2% instead of 0.1% as expected, although the new level of growth still represents a poor start to the year.
EU Summit Begins in Brussels as Theresa May Faces Criticism over Brexit, Causing GBP/EUR to lose 0.4%
As the EU Council summit begins in Brussels, UK Prime Minister Theresa May faces calls to make it clear what the UK’s stance is on leaving the EU.
Furthermore, European leaders claim they ‘do not know who is in charge’ in Britain, with EU head Jean-Claude Juncker saying the government’s unclear position is making it very hard for the EU to negotiate with it.
As a result of this, the pound has remained under pressure throughout the afternoon and is now down 0.4% against the Euro.
Juncker – ‘I don’t have to lecture Mrs May but I would like our British friends to make clear their positions = we can’t go on with a split cabinet – they have to say what we want’
— Laura Kuenssberg (@bbclaurak) June 28, 2018
EU Leaders Unhappy with Slow Brexit Progress, Causing GBP/EUR Exchange Rate Decline
UPDATE 14:24 BST: The Pound (GBP) has seen continued losses against the Euro (EUR) this afternoon, dropping to an exchange rate of €1.12 at the interbank rate.
This worsening of the GBP/EUR exchange rate has been put down to comments made by EU leaders about Brexit.
Irish Prime Minister Leo Varadkar has warned that UK negotiators need to compromise, while Dutch PM Mark Rutte has focused on the Irish border:
‘What I want to say is that I believe the first, second and third priority now is to solve this issue of the Irish border.
And when that is solved so many other issues will be easier to discuss.’
Brexit isn’t the headline issue at the ongoing EU summit, but any further statements on the matter could cause additional damage to the Pound.
Growing Pressure to Resolve Brexit Issues Drags Pound to Euro (GBP/EUR) Exchange Rate Lower
UPDATE 10:25 BST: The Pound (GBP) has been in low demand this morning, falling by -0.3% against the Euro (EUR) and struggling against other currency peers.
This deterioration for comes ahead of a two-day EU summit, starting today, which will include UK progress on Brexit as one of its key topics.
Brexit won’t be the main focus for EU leaders, but discussions are still expected to bring scrutiny of the UK’s limited negotiating progress in 2018.
If the meetings bring criticism of and warnings against the UK’s stalled Brexit talks, then the GBP/EUR exchange rate could fall further.
Hints about August Interest Rate Hike could Push GBP/EUR Exchange Rate Higher
The Pound (GBP) slipped against the Euro (EUR) yesterday, but has a chance to recover today when a Bank of England (BoE) policymaker, Andy Haldane, gives a speech.
The BoE was in the spotlight yesterday as well, but may have contributed to the day’s GBP/EUR exchange rate losses with a cautious financial stability report.
This report concluded that UK banks could weather a ‘disorderly Brexit’, but warned about future disruption because of slow progress in Brexit talks.
Euro to Pound Exchange Rate Recap: EUR/GBP Advances ahead of EU Summit
There was limited positive news out of the Eurozone yesterday, so the Euro (EUR) primarily appreciated against the Pound (GBP) on optimism ahead of a Eurogroup meeting.
Taking place today and on Friday, this meeting will bring up topics such as the EU’s approach to the continuing migration dispute, Eurozone reform and the current state of Brexit talks.
Although the Brexit discussions and migration talks might prove contentious, there are lingering hopes that solid progress will be made on securing a stronger, more stable Eurozone.
Daily Pound to Euro Exchange Rate Forecast: Will GBP/EUR Rally on BoE Haldane’s Speech?
Looking ahead, Pound Sterling (GBP) might be able to advance against the Euro (EUR) this afternoon when Bank of England (BoE) official Andy Haldane gives a speech in London.
Before then, there will be an earlier opportunity for GBP/EUR exchange rate gains when a range of Eurozone confidence readings come out.
These measures of optimism levels in June are predicted to show falling business and consumer confidence, which might mean that the Euro slides against the Pound.
Another Eurozone data release in the afternoon, also before Mr Haldane’s speech, will be German inflation rate estimates for June.
The rate of monthly and annual price growth is predicted to slow, which could cause additional Euro losses because it might indicate a Eurozone-wide inflation rate slowdown.
Hints of August Interest Rate Hike could Boost Pound to Euro Exchange Rate Today
Getting back to the UK news, Mr Haldane could trigger a GBP/EUR exchange rate rally today if he discusses a possible near-term interest rate hike.
Last week saw Pound Sterling (GBP) appreciate when Mr Haldane broke from tradition and backed higher interest rates, along with two other policymakers.
This led economists to forecast that an August interest rate hike could be incoming; GBP traders will be looking for any hint of this when Mr Haldane speaks today.