Relief at UK Economic Expansion Pushes GBP/EUR Exchange Rate Higher
The Pound (GBP) has ticked higher against the Euro (EUR) today, hitting an interbank rate of €1.11.
This recovery for Pound Sterling has been caused by initial UK GDP estimates, which have shown a faster pace of economic growth on the quarter and the year during Q2 2018.
There has been scepticism about whether the UK economy is really recovering, but the data has still supported GBP/EUR exchange rate movement.
Turkish Currency Crisis Drags Euro to Pound Sterling (EUR/GBP) Exchange Rate Down
The Euro (EUR) has slipped against the Pound (GBP) today, following news of Turkey’s worsening currency crisis.
The Turkish Lira has plunged to historic lows today and the European Central Bank (ECB) is reportedly concerned that Eurozone banks who have invested in Turkey will suffer.
Despite analysts asserting that a Turkish economic crisis would cause little material impact in the Eurozone, the single currency has still fallen today due to trader fears.
Weekly Pound to Euro Exchange Rate Forecast: Will GBP/EUR Rise Higher on UK Wage Growth?
Looking ahead, there will be several opportunities for the Pound (GBP) to appreciate against the Euro (EUR) in the coming week, starting with Tuesday’s UK jobs market data.
June’s UK unemployment rate is tipped to rise slightly, but the Pound could still appreciate if wage growth is reported higher during the month.
Faster wage growth will suggest UK economic stability and could raise GBP trader hopes for another Bank of England (BoE) interest rate hike.
Additional GBP/EUR exchange rate support may come from Wednesday’s inflation rate readings for July; a possibly GBP-boosting year-on-year rise has been forecast.
Any Pound to Euro advances could give way to losses on Thursday, however, should July’s UK retail sales stats reveal a slowdown for the non-fuel reading.
Future EUR/GBP Forecast: Are Euro to Pound Exchange Rate Gains ahead on German GDP?
For Euro (EUR) traders, the coming week will start with the release of German GDP stats on Tuesday morning.
Preliminary Q2 readings are expected to show a faster pace of economic expansion for the quarterly and annual readings; such results could boost the EUR/GBP exchange rate.
Even though later Eurozone GDP readings are tipped to show a slowdown, Euro traders could ignore this data because of Germany’s significance for Eurozone growth.
Beyond this data, Euro traders will also be watching Friday’s finalised Eurozone inflation rate stats for July.
A month-on-month slowdown is expected, but as year-on-year growth is forecast the Euro could advance against the Pound on the news.