EXH: Euro To Pound Sterling Exchange Rate Outlook: Uptrend
The mood towards the Euro was bearish during the morning of Fridayâ€™s European session, in spite of Eurozone finance ministers expressing confidence over progress on Greek bailout talks.
Even so, the Euro Pound exchange rate was able to maintain a solid uptrend thanks to the UK visible trade deficit widening from -11.9 billion to -12.4 billion in February, highlighting the countryâ€™s trade vulnerability.
EUR/GBP could have put in a solid recovery on Thursday if not for warnings from ECB officials throughout the day. In the afternoon, ECB Vice President VĂtor ConstĂ˘ncio echoed the caution suggested by Draghi earlier in the day.
With policy divergence between the ECB and the Fed looking set to increase over the coming months the mood towards the Euro is expected to remain muted.
However, in the absence of fresh UK data the Euro Pound exchange rate has been able to return to a narrow trend.
Euro Slides as ECB President Slams the Brakes on Rate Hike Expectations
The EUR GBP exchange rate has slipped by -0.2% today, owing to explicitly anti-rate hike comments from the European Central Bank (ECB).
Speaking in Frankfurt, ECB President Mario Draghi stated;