Pound Sterling (GBP) has slumped by -0.4% against the Euro (GBP/EUR) and by -0.3% against the US Dollar (GBP/USD) today, movement likely brought about by investor concerns for the incoming UK economic data.
UK Poised for Key Data Releases, Current Forecasts Optimistic
At the time of writing, expectations were for positive developments for the UK’s Unemployment Rate and Claims count in December and January respectively, although it appears the less optimistic earnings forecast may be holding investors back from fully committing.
Earlier…
Pound Sterling (GBP) has made losses of -0.7% against the Euro (GBP/EUR) and -1.1% against the US Dollar (GBP/USD) today, mainly as a result of the morning’s UK inflation rate stats leaving a bitter taste with investors.
UK’s Most Impactful Data Today Backfired, Leading to Sterling’s (GBP) Downfall
The most notable occurrence for the Pound (GBP) today has been a steady ebbing of appeal, which was triggered by the earlier UK inflation rate stats for January having a progressive negative impact.
Earlier…
The Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates have both risen today, with the Pound posting fairly broad-based gains. The Euro (EUR) has conversely tanked while US Dollar (USD) movement has been largely positive.
GBP/EUR, GBP/USD Exchange Rate News: Brussels Saga Continues Today as PM Reaches for Support
Pound Sterling (GBP) has been on a general uptrend today, with advances including 0.3% against the Euro (GBP/EUR) and the US Dollar (GBP/USD), 0.7% against the Chinese Yuan (GBP/CNY) and 1.2% against the New Zealand Dollar (GBP/NZD).
The most notable development for the UK today has been the news that PM David Cameron is travelling to Brussels, where he will be attempting to secure much-needed support for the current package of UK-EU reforms to be featured as part of the referendum vote conditions. As per usual, however, the PM faces opposition to some terms from Eastern-European nations like Poland. Unfortunately, current forecasts are that up to and after Thursday’s finalisation meeting, the Pound will be softened by a continued focus on the referendum.
Euro (EUR) Crashes Today while US Dollar (USD) Exchange Rate Stabilises
The Euro (EUR) has largely slumped against the competition this morning, with the single currency’s gains being few and far between. On the positive side, the Euro has risen by 0.3% against the Indian Rupee (EUR/INR) and by 0.6% against the New Zealand Dollar (EUR/NZD), but the more general state of play has seen the common currency fall by -0.4% against Pound Sterling (EUR/GBP), -0.8% against the Canadian Dollar (EUR/CAD) and post a minor decline against the US Dollar (EUR/USD).
The only Eurozone data to speak of this morning has been fairly low impact, having consisted of the January new car registrations, which have fallen from a previous 16.6% to 6.2% today.
The US Dollar (USD) has been enjoying far more positive movements, having advanced by a small amount against the Euro (USD/EUR) today but made greater gains of 0.3% against the South African Rand (USD/ZAR) and the Indian Rupee (USD/INR) and additionally advanced by 0.8% against the New Zealand Dollar (USD/NZD).
Yesterday brought no direct US data to generate movement, given that the occurrence of President’s Day essentially shut down all major economic activity.
GBP, EUR, USD Exchange Rate Forecast: UK CPI Data Predicted to Spark Pound Sterling Movement
The near future will see the announcement of a large number of UK economic publications, with the main entries being the inflation rate results for January. At the time of writing, forecasts were for a rise on the base year, a drop into a negative range for the base monthly printing and a fractional reduction from 1.4% to 1.3% for the Core CPI.
Following this will be the Eurozone and German ZEW surveys of economic sentiment and the current situation, covering February. Current forecasts are largely pessimistic.
Current GBP, EUR, USD Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2976, the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7709, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.4505, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6895, the Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1180 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.8948 today.