Pound Euro (GBP/EUR) Exchange Rate Slips towards End of Trade
(Updated 9:00, 15/7/22) The Pound Euro (GBP/EUR) exchange rate turned south towards the end of yesterday’s session as a slight fall in energy prices alleviated some pressure on the single currency.
Meanwhile, the ongoing political uncertainty in the UK seemed to get the better of the Pound (GBP). The remaining five candidates in the Tory leadership contest will take part in a televised debate tonight.
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Pound Euro (GBP/EUR) Exchange Rate Wavers amid Gloomy European Market Mood
(Updated 15:30, 14/7/22) The Pound Euro (GBP/EUR) exchange rate has fluctuated today as a downbeat mood among European investors weighs on both currencies.
Markets are pricing in recessions in the UK and the Eurozone, putting pressure on both Pound Sterling (GBP) and the Euro (EUR). Analysts also expect a recession in the US, as the Federal Reserve continues aggressively hiking interest rates to tame soaring inflation.
GBP and EUR are increasingly sensitive to European risk appetite, with the current sour mood denting both. Against one another, however, the two currencies are wavering.
Since European trade began, the Pound Euro exchange rate has see-sawed between €1.1828 and €1.1799. At the time of writing, GBP/EUR is trading at around €1.1815.
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Pound Euro (GBP/EUR) Exchange Rate Wobbles in Tentative Trade
The Pound Euro (GBP/EUR) exchange rate is wavering in a narrow range today as a lack of notable data on both sides keeps the currency pair subdued.
Pound (GBP) Quiet amid Political Uncertainty
The Pound (GBP) seems subdued today as yesterday’s surprisingly strong UK GDP figures fail to provide a lasting tailwind. Instead, political instability is keeping GBP investors rather hesitant.
Yesterday, Nadhim Zahawi and Jeremy Hunt were eliminated from the Tory leadership contest, leaving just six candidates remaining.
The next leader of the Conservative Party, and next Prime Minister, will have the difficult task of steering the country through incredibly challenging times. Approaches to fiscal policy could vary among the potential leaders, creating uncertainty for investors in the interim.
This seems to be holding GBP traders back from placing any aggressive bets today, particularly amid a lack of economic data.
Euro (EUR) Rangebound in Absence of Data
Meanwhile, the Euro (EUR) is also struggling to find a clear direction today. Eurozone recession fears continue to pressure the single currency, as does EUR’s negative correlation to a stronger US Dollar (USD).
However, some analysts believe the Euro is currently in oversold conditions. Therefore, despite the pressure, EUR is so far putting up a resistance, keeping GBP/EUR in a narrow range.
Pound Euro Exchange Rate Forecast: EU Economic Projections to Dent EUR?
The European Commission will release its latest economic projections this morning, with markets braced for bad news.
Last night, Bloomberg received a draft document. The news outlet reported that the Eurozone pandemic recovery will be weaker than expected while inflation forecasts will once again be upwardly revised.
❗️We got the draft document ? https://t.co/z11UZJk5yE
— Jorge Valero (@europressos) July 13, 2022
The bleak economic projections could hurt EUR. However, as markets are already anticipating some worrying figures, they may already have priced them in.
As for Sterling, the political uncertainty continues. GBP exchange rates may continue to struggle to find support today, which could limit any gains.