- Euro limited in exchange rates after German GDP – French claims still to come
- Pound Sterling finally tumbles in exchange rates – Mortgages data due shortly
- US Dollar trends in a tight range – July home sales expected today
The Euro has reversed its previous movements against the Pound and US Dollar, falling against the ‘Buck’ and rising against Sterling. This comes in the aftermath of Germany’s Q2 finalised GDP growth rate results, which have matched with forecasts and fallen on the quarter but risen on the year. The next daily Eurozone news will come in the late afternoon, when France’s positively forecast unemployment benefit claims news is due.
The Pound has posted a number of losses against its usual peers so far in trading, having finally succumbed to profit-taking pressures and lost its value overall. The near-future will bring medium-impact UK data, consisting of BBA loans for house purchases in July.
The US Dollar has been technically positive in exchange rates overall, with marginal gains being seen against most of the USD’s peers. The day’s main piece of US data will come during the afternoon, when the existing home sales figure for July is due to be announced.
(Last updated August 24th, 2016)
The Pound stayed positive yesterday on continued investor optimism, while the US Dollar slumped when August’s sales stats came out negatively. The UK will bring mortgaging data today, while from the US home sales stats are expected.
Eurozone Economic News: Euro Softened after EZ PMI Flashes and Confidence Score Disappoint
The Euro lost out against the Pound and the US Dollar yesterday, as well as recording losses against most of its other regular peers. These slips in exchange rates came from Eurozone domestic data over the morning and afternoon, which had been forecast pessimistically to begin with.
France and the Eurozone saw better-than-expected results for their August flash PMIs for the composite and services fields, but Germany’s PMI flashes all declined, as did the Eurozone and French manufacturing PMIs.
Other notable news concerned the Eurozone consumer confidence flash for August, which fell from -7.9 to -8.5. Speaking during the day, European Central Bank (ECB) official Benoit Coeure caused concern when he said;
‘If no [reforms] take place, then the central bank may have to do more. The only message here is if there is not much taking place on the structural reform front, if there is not much taking place on the fiscal policy front, from what can be done, then the ECB would have to do more’.
This was interpreted dovishly, as meaning possibly further savings-harming easing measures from the ECB.
Pound Sterling Rallies while US Dollar Slips on Manufacturing Stats
The Pound was in consistently high demand over the course of Tuesday, helped out in exchange rates by a streak of investor optimism from Friday’s late story about the erroneous claim that Article 50 would be triggered as late as April 2017.
Actual UK data was by no means positive, though as the Confederation of British Industry (CBI) industrial trends for orders in August only fell from -4 to -5 instead of -6, this was taken as a positive sign by some investors and saw the Pound’s value tick up again.
The US Dollar had a worse run of luck, closing trading in a devalued state due to poor domestic data lowering expectations of what may be said during Friday’s Jackson Hole Symposium.
In addition to the monthly Redbook retail sales result up to August 20th falling from -0.3% to -0.4%, the Markit manufacturing PMI flash for August fell from 52.9 to 52.1 and the Richmond Fed manufacturing index for the same month dropped from 10 to -11.
Future EUR GBP USD Forecast: German GDP, UK Mortgages and US Home Sales Results Imminent
The Eurozone will bring the first data of the day shortly, covering Germany’s finalised Q2 GDP growth rate on the quarter and the year. This is expected to respectively fall and rise.
From the UK, the BBA mortgage approvals result for July is due; this has a dip from 40.1k to 38.8k predicted.
The US’s contributions will focus on existing home sales in July, which are expected to shift on the year from 5.57m to 5.4m.
Recent EUR, GBP, USD Exchange Rates
The Euro Pound (EUR GBP) exchange rate has been trending in the region of 0.8582 and the Pound Euro (GBP EUR) exchange rate has been trending in the region of 1.1654 recently.
The Euro US Dollar (EUR USD) exchange rate has been trending in the region of 1.1312 and the US Dollar Euro (USD EUR) exchange rate has been trending in the region of 0.8843 recently.
The Pound US Dollar (GBP USD) exchange rate has been trending in the region of 1.3185 and the US Dollar Pound (USD GBP) exchange rate has been trending in the region of 0.7586 recently.
