- EUR GBP remains at 0.85 – GBP EUR rises to 1.17
- Euro remains mixed after German PMI flashes – Overall Eurozone results exceeded forecasts
- Pound rises recorded after 2016 Autumn Statement – Uncertainty widespread after Autumn Statement is abolished
The Pound has been the star of the EUR GBP pairing this afternoon, having risen considerably in the wake of the much-anticipated Autumn Statement.
Much of Chancellor Philip Hammond’s revelations had arrived beforehand, though the biggest surprise of the day was the abolishment of the Autumn Statement itself.
Hammond did this to prevent a late-year rewrite of previous budget choices, but the news was still an unprecedented announcement from the Chancellor.
Elsewhere, forecasts from the Office of Budget Responsibility were highly pessimistic, with estimates coming in of almost £2tr worth of debt by 2019-20, as well as cut growth forecasts in almost all years moving up to 2020.
(Last updated November 23rd, 2016)
The Pound has found itself in low demand across the board so far today, owing to the negative predictions about how the day’s Autumn Statement may play out.
Euro Exchange Rate News: Mixed PMI Flash Results Limit EUR Growth Today
The Euro Pound exchange rate has crept up today, despite widespread investor uncertainty following the latest Eurozone data.
This has consisted of PMI flashes for November, which have shown a decline in the French manufacturing figure and the German manufacturing and composite stats, although elsewhere, services, composite and manufacturing PMI advances have been seen across the Eurozone.
Offering optimism has been Markit Chief Business Economist Chris Williamson, who has stated that;
‘The preliminary [Eurozone composite] PMI results for November indicate the sharpest monthly increase in business activity so far this year, with plenty of signs that growth will continue to accelerate’.
Pound Sterling in Steep Decline ahead of Key Commons Statement from Chancellor Hammond
The Pound Euro exchange rate has trended tightly today.
The main focus of investors today has been on the incoming Autumn Statement, which is set to be delivered by Chancellor Philip Hammond shortly after midday.
While some economists have been looking for Hammond to pull some economic ‘rabbits out of a hat’, the latest predictions for the UK economy have not provided much room for manoeuvring.
Among those with this attitude have been Institute of Economic Affairs News Editor Kate Andrews, who has stated that;
‘[Hammond is] in a tough spot because growth forecasts are down according to the Office of Budget Responsibility, and he’s also potentially looking at some higher inflation figures, which is why I think we’re seeing some stranger things in this Budget that have been released so far’.
Future EUR GBP Forecast: Possibility for Limited Impact of Cautious Autumn Statement Today
The next source of movement for the Euro Pound exchange rate is set to come from the UK, when the first Autumn Statement under Philip Hammond is delivered.
Should the Chancellor produce the elusive economic ‘rabbits’, conjuring up an unexpected amount to spend, the Pound could well rise. As it stands, however, the general outlook is that Sterling will deteriorate after the Statement is delivered, due to Hammond’s expected cautious tone.
From the Eurozone, Thursday morning will see the announcement of the finalised Q3 German GDP growth rate figures, as well as the Ifo business climate stats for November.
GDP is expected to fall on the year and quarter, while business climate is expected to show a slight dip on the month.
Current Interbank Exchange Rates
The Euro Pound (EUR GBP) exchange rate was trending in the region of 0.85 and the Pound Euro (GBP EUR) exchange rate was trending in the region of 1.16 today.