The Euro to US Dollar (EUR/USD) and Euro to Pound Sterling (EUR/GBP) exchange rates have both nosedived today, on account of the morning’s Eurozone inflation rate figures exceeding the worst expectations.
EUR/USD, EUR/GBP Exchange Rate News: Poor Start for Common Currency This Week
The Euro’s (EUR) value has plummeted relative to its peers today, with the annual February CPI outcomes being the triggering factor. On the year, a drop from 0.3% to -0.2% has been recorded, while for the Core variant, a slide from 1% to 0.7% has been seen.
With the European Central Bank (ECB) currently making all efforts to get the inflation rate up to 2%, this has come as a major setback for the central bank and the currency bloc as a whole.
In the wake of the news, the Euro hit dramatic lows of -0.2% against the Pound Sterling (EUR/GBP), -0.3% against the US Dollar (EUR/USD), -1.1% against the Japanese Yen (EUR/JPY) and -1.4% against the South African Rand (EUR/ZAR).
US Dollar (USD) Fluctuates Today while Pound Sterling (GBP) Tentatively Advances
The US Dollar (USD) has moved sporadically against its peers so far today, with losses of -0.5% against the Indian Rupee (USD/INR) and -1% against the Japanese Yen (USD/JPY) being matched by gains of 0.5% against the Canadian Dollar (USD/CAD) and the New Zealand Dollar (USD/NZD).
A potential reason for this uncertainty among ‘Buck’ investors is that ‘Super Tuesday’ is rapidly approaching, the day when most of the votes for the Republican and Democrat candidates will come in.
Although future votes will still be conducted before the nominations are whittled down to one presidential candidate per party, tomorrow is thought to have a deciding influence on the overall tone and direction of the competition to be in the running for the presidency.
Pound Sterling (GBP) has similarly fluctuated today, although compared to its movement this time last week, the Pound has fared considerably better. Amid the now-normal ‘Brexit’ concerns, the Pound has also been destabilised by the estimation from the British Retail Consortium that 900,000 UK careers in the retail sector could be cut by 2025.
Today, Sterling has made a gain of 0.3% against the Euro (GBP/EUR), flatlined against the US Dollar (GBP/USD) and has crashed at -1.1% against the South African Rand (GBP/ZAR).
EUR, GBP, USD Exchange Rate Forecast: Irish and Portuguese Ecostats due Shortly
The near-future will mainly be focused on the Eurozone in terms of economic announcements, given that the one US release of note will isn’t due until the afternoon.
The Eurozone’s contributions are Irish property prices and retail sales, as well as Portugal’s GDP and retail sales stats. Unfortunately for the common currency, in all fields except the annual Q4 Portuguese GDP, predictions are for slumps relative to prior printings.
Later on, the US’s annual pending home sales figure for January is due out, which was forecast to rise from 3.1% to 4.1% at the time of writing.
Current EUR, USD, GBP Exchange Rates
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.0908, the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9171, the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7874, the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2711, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.7220 and the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.3852 today.