The Euro (EUR) was able to gain on both the Pound (GBP) and US Dollar (USD) as the week continued and the Eurozone published more encouraging ecostats. The Pound, meanwhile, remained under pressure as UK data fell short and the prospect of further easing from the Bank of England (BoE) took a heavy toll.
- Euro (EUR) Exchange Rates bolstered by tumbling Portuguese unemployment – Industrial production stats more mixed
- Pound dives despite BoE bond success – Slight relief in rail situation
- US Dollar smashed by plunging confidence – More oil than expected lowers crude cost
- Italian trade results out shortly – US to bring claims stats
The US Dollar (USD) has been putting on a mixed performance as a result of oil price movements and conflicting expectations regarding the likelihood of the Federal Reserve introducing an interest rate hike in September.
Eurozone Economic News: Euro (EUR) Climbs as Portuguese Unemployment Saves the Day
Tuesday saw the Euro (EUR) enjoy a comparatively strong trading session, with the common currency having risen by 0.5% against both the Pound (EUR GBP) and the US Dollar (EUR USD).
Good news for the Euro has been slightly difficult to thin out, given that the morning’s annual industrial production results for June failed to show one clear pattern among nations. Ultimately, France and Slovakia showed falling production, while the figure rose for lesser contributors Finland and Slovenia.
In later and better news, Portugal’s unemployment rate for Q2 fell from 12.4% to 10.8%, which was better than forecast. Additionally, the national annual inflation rate rose in July from 0.5% to 0.6%.
Pound (GBP) and US Dollar (USD) Exchange Rates Slumped on Low Confidence
The Pound has been on the rocks lately, having been repeatedly held back over the course of the week by negative news; in rates, Sterling has dipped by -0.5% against the Euro (GBP EUR) and by a smaller amount against the US Dollar (GBP USD).
Domestic news has mainly focused on the Bank of England (BoE), which after an earlier failed attempt to reach a bond-buying target has since succeeded, although only because of the capitulation of holdout investors.
Rail strikes have been suspended on the Southern network, although Virgin East and Eurostar still remained in strike status at the time of writing.
The US Dollar may have been faring worse than the Pound overall, having managed a fractional rise against the Pound (USD GBP) but flopped by -0.5% against the Euro (USD EUR).
News out of the US has concerned rising mortgages in early August and a higher-than-expected crude oil stock amount; this latter news has heavily devalued crude oil costs and the US Dollar by extension.
Future EUR GBP USD Forecast: Italian Trade Stats, US Jobs Data Ahead
The next notable data will come out of the Eurozone tomorrow morning, when Italy announces its balance of trade result for June; this has a surplus reduction from 5.03bn to 2.22bn on the cards.
Also out will be a number of US claims results in the early afternoon. Continuing jobless claims up to the end of July are expected to rise from 2138k to 2144k, while initial jobless claims for the start of August have a shift down from 269k to 266k in store.
Current EUR GBP USD Exchange Rates
The Euro Pound (EUR GBP) exchange rate was trending in the region of 0.8591 and the Pound Euro (GBP EUR) exchange rate was trending in the region of 1.1640 today.
The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.1166 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.8958 today.
The Pound US Dollar (GBP USD) exchange rate was trending in the region of 1.2997 and the US Dollar Pound (USD GBP) exchange rate was trending in the region of 0.7695 today.