The GBP to EUR forecast rate is looking uncertain right now. Over the last week, there were no strong moves, with the exchange rate vacillating up and down. The reason for this is the uncertainty that traders have surrounding the pair. They are still not certain as to the future monetary policies of central banks.
While the euro has generally been performing well against the GBP, it has not done so well elsewhere. It suffered against a number of major currencies. This points to just how weak the pound currently is.
The GBP to EUR forecast rate currently stands around €1.16, not having made large shifts from last week. A conversion of 100 GBP to EUR would leave us at €116. Last Monday, there has already been progress for the pair, as the pound suffered setbacks. The euro, however, did suffer from traders worrying about possible ECB plans to stop rate hikes. By the end of the week, the ECB confirmed that it would not push for further hikes. This finally dropped the euro’s value, except against the pound.
Pound’s Role in The GBP to EUR Forecast
The pound’s situation is somewhat different. The current weakness in the British economy dragged the pound down as traders felt cautious about the currency. A mixture of comments from BoE officials also spurred on volatility in the pound’s value. Traders felt unsure as to what the BoE’s stance actually was.
A number of figures led to the insecurity regarding the UK economy. There was a rise in unemployment up to July, with a loss of over 200,000 jobs. Furthermore, indicators on GDP were negative. There was a shrinking of 0.5% for GDP in July alone. According to experts, the causes ranged from the recent strikes to even poor weather. Now, traders worry about the possibility of a recession. All of this will likely have implications for the GBP – EUR forecast we will have to find out about.
