EUR/GBP rallies to levels near 0.8300 after disappointing UK data
- The Euro bounces up from two-year lows with the GBP tumbling after weak UK data.
- UK GDP contracted for the second consecutive month in November.
- The diverging forward guidance of the ECB and the BoE has kept the Euro vulnerable.
The Euro is rallying for the second consecutive day on Friday and approaches the 0.8300 level after bouncing from a two-year low at 0.8225 earlier this week.
Data from the UK released earlier on Friday revealed that the Gross Domestic Product contracted for the second consecutive month, with Manufacturing production dropping sharply. These figures cast doubt on the UK’s economic outlook and add pressure on the BoE to keep easing monetary policy.
The Pound had rallied about 1.6% against the Euro in December and more than 3% since early August on speculation that the softer Eurozone economy would force the ECB to cut rates deeper than the BoE.
The ECB trimmed its benchmark interest rate by 25% basis points on Thursday and is expected to keep cutting rates at every meeting in the first half of next year.
The BoE, on the other hand, is seen moving more slowly and keeping rates on hold at the current 4.75% next week although further negative data might put this view into question and add pressure on the GBP.
British Pound PRICE Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.44% | 0.05% | 0.51% | -0.08% | -0.26% | -0.15% | 0.03% | |
| EUR | 0.44% | 0.49% | 0.95% | 0.36% | 0.18% | 0.29% | 0.47% | |
| GBP | -0.05% | -0.49% | 0.47% | -0.13% | -0.32% | -0.21% | -0.02% | |
| JPY | -0.51% | -0.95% | -0.47% | -0.57% | -0.77% | -0.66% | -0.48% | |
| CAD | 0.08% | -0.36% | 0.13% | 0.57% | -0.20% | -0.07% | 0.10% | |
| AUD | 0.26% | -0.18% | 0.32% | 0.77% | 0.20% | 0.11% | 0.29% | |
| NZD | 0.15% | -0.29% | 0.21% | 0.66% | 0.07% | -0.11% | 0.18% | |
| CHF | -0.03% | -0.47% | 0.02% | 0.48% | -0.10% | -0.29% | -0.18% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
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