The Euro has risen slightly against the Pound and US Dollar today, although these gains for the single currency come despite negative domestic data.
- EUR GBP rate trends at 0.85 – EUR USD exchange rate rises to 1.05
- Euro demand unstable after falling Italian industrial figures – German sales stats due Monday
- Pound softens after GBP printings – UK lending stats out on Tuesday
- US Dollar flops after Thanksgiving drought – Further losses possible on incoming PMI flashes
Both the Pound and the Euro have been in low demand today, on account of widespread market uncertainty about Brexit and incoming US President Donald Trump, respectively.
Euro Exchange Rate News: EUR Demand Limited after Italian Industrial Disappointment
The Euro has risen to 0.85 against the Pound today and hit 1.05 against the US Dollar, though in most other pairings the EUR has either declined or trended tightly.
This drying up of demand for the Euro comes after the earlier Italian industrial sales and orders figures for September, which have been near-universally damaging to the Eurozone’s outlook.
As well as monthly orders and both yearly and monthly sales turning negative on the month, the annual industrial orders result has also dived from 16.5% to a meagre 2.6%.
Further Italian data has also reduced the Euro’s chances of rising further against its peers, with retail sales for September seeing negative expansions on the month and year.
Pound and US Dollar Slump as EU Leaders and Trump Plans Unsettle Markets
The Pound has fallen by -0.3% against the Euro to 1.17 today, while against the US Dollar a fractional rise to 1.24 has been seen. Overall interest in Sterling is low, on account of yet more signs that a ‘Hard Brexit’ may be unavoidable.
The latest contributor on this front has been Malta’s Prime Minister, Joseph Muscat, who has stressed that the EU is ‘not bluffing’ when it declares that no free movement into the UK will be met with no single market access.
The US Dollar’s latest source of woe has been the assertion by President-Elect Trump that he will pull the US out of the Trans-Pacific Partnership (TPP), a multinational trade deal that it took years to sign up to.
While this could theoretically lead to the US forging fresh and more advantageous trade relationships afterwards, it also entails a significant amount of risk if Trump finds independent nations unreceptive towards his entreaties.
The US Dollar has fallen against the Euro and Pound today, printing at 0.94 and 0.80 respectively.
Future EUR GBP USD Forecast: Closing US Dollar Volatility Possible on PMI Flashes
The week is effectively over when it comes to impactful Eurozone data today, though there are still notable announcements due from the US before the European trading session closes today.
These will cover the US’s services and composite PMI flashes for November, which have USD-softening declines forecast in both fields.
The first impactful Eurozone data of next week is set to be Monday morning’s German retail sales figures, which are forecast to have made positive movement on the month and year in October.
The next UK news to watch out for will be Tuesday’s mortgage lending and approvals figures, which are expected to have dipped in October in the latter case.
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 1.17 today.
The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.05 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.94 today.
The Pound US Dollar (GBP USD) exchange rate was trending in the region of 1.24 and the US Dollar Pound (USD GBP) exchange rate was trending in the region of 0.80 today.