Euro Zone News

Sterling Retakes 1.16, Are Better Pound To Euro Exchange Rate Ahead For Holidaymakers?

The GBP/EUR Exchange Rate Ends Week at Best FX Level Since February 2020

The British Pound to Euro (GBP/EUR) exchange rate ended the week once again on a stronger footing, securing the best level buyers had seen in over a year.

Friday’s price action saw the Sterling-Euro pairing recoup losses earlier in the day, to end the week quoted around the 1.16161 level.

With the Great British Summer odds improving by the day and holidays to Spain, Greece and Turkey potentially back on the menu, will Euro (EUR) buyers in the UK see a further push into the mid 1.16s again this week?

Euro (EUR) Exchange Rates Outlook: Positive Data from Germany Bolsters the Single Currency

A rise in German Industrial Orders for January saw the Euro push higher against the Pound during Friday’s session.

Whilst a consensus forecast had put the figure at 0.7%, the rise to 1.4% has put the Euro on a better footing heading into next week.

Carsten Brzeski, global head of macro at ING commented on the data, saying:

‘German industry had remained almost unharmed by the November lockdown. In fact, the industrial revival since the summer, though coming from very low levels, is the reason why the German economy weathered the fourth quarter much better than most Eurozone peers.’

best exchange rates today

Pound (GBP) Exchange Rates Weaken as Foreign Exchange Markets Calm Following UK Budget

The Pound was down earlier on Friday as currency markets calmed following the UK’s Spring Budget announcement on Wednesday.

The budget took a ‘spend now, pay later’ stance, with furlough extended and a rise in corporation tax in 2023 also announced.

Pound Sterling (GBP) also retreated following another rise in US Treasury Yields during Friday’s session, as a risk-off mood swept markets.

Limiting Sterling further was the release of the Halifax house price index for February, which showed that UK’s housing market was slowing down following a boom last year.

Russell Galley, managing director at Halifax, said:

“The performance of the housing market remains inextricably linked to the health of the wider economy. The pace and extent of recovery are still highly uncertain, and much will depend on the ongoing success of the UK’s vaccination roll out. Therefore, we would not expect the level of growth seen in house prices over the past year to be sustained throughout 2021.”

GBP to EUR Near-Term Forecast: Will, Pound Sterling Fall Lower Amid Rising Yields?

Heading into this week, we could see the Euro head lower if Q4 GDP data estimates from the Eurozone remain in contraction which would put the bloc at risk of a double-dip recession.

Furthermore, Euro traders will be keeping an eye on the European Central Bank’s (ECB) interest rate decision which is expected to stay at 0%, to help combat the coronavirus pandemic.

Pound Sterling exchange rate investors will be waiting until the middle of the week for any notable data, with industrial and manufacturing data from January expected to remain in contraction following the national lockdown implemented at the start of the year.

These are the key factors that could influence the Pound to Euro (GBP/EUR) exchange rate in the coming week.

Advertisement

Save money on your currency transfers with TorFX, voted International Money Transfer Provider of the Year 2016, 2017 and 2018. Their goal is to connect clients with ultra competitive exchange rates and a uniquely dedicated service whether they choose to trade online or over the telephone.
Find out more here.







Related posts

Euro 2020: Belgium knock out holders Portugal in last-16 – after Czech Republic stun Netherlands | World News

admin

UPDATE 1-Euro zone bond yields rise with German inflation

admin

REUTERS NEWS SCHEDULE AT 11 a.m. GMT/6 a.m. ET

admin

Leave a Comment