The Pound has managed to advance against the Euro and achieve a state of parity against the US Dollar, in the wake of a slightly better-than-expected World Trade Organisation (WTO) forecast.
- Pound steady after WTO forecast – Predictions of no recession inspire investors
- Euro weakened by DB fears – Concerns voiced about overall Eurozone stability
- US Dollar unsettled by US presidential election debate – Profit-taking weakened USD
- Central bank speeches incoming – GBP may drop on Haldane comments
The Euro has generally fallen against its peers due to an apparent crisis engulfing Deutsche Bank, while the US Dollar has fluctuated following a ground-breaking US Presidential election debate.
Pound Sterling News: Gains for GBP after WTO Report sees Resilience in UK after ‘Brexit’
While the Pound started off trading today in a position of weakness, it has since managed to advance against the Euro and stabilise against the US Dollar, though recurrent fears about the consequences of a ‘Hard Brexit’ have left the UK currency in a weakened state.
Against the Euro (GBP EUR), the Pound has been trading at 1.15, having started trading this month at 1.18. For the US Dollar (GBP USD), Sterling has been trading in the area of 1.29, a far cry from the month’s opening rate of 1.32.
Earlier losses were triggered by concerns that a ‘Hard Brexit’ could damage the UK economy, while subsequent gains have come from a WTO statement. Although the organisation has made pessimistic predictions, they have not been as bad as possible;
‘Effects over the longer term remain to be seen. Economic forecasts for the UK in 2017 range from fairly optimistic to quite pessimistic. Our forecast assumes an intermediate case, with a growth slowdown next year but not an outright recession’.
Euro Losses as Deutsche Bank Teeters, US Dollar Mixed with Debate in Focus
The Euro has found itself in low demand during trading today, mainly on account of an ongoing crisis engulfing Germany’s largest commercial bank, Deutsche Bank (DB).
While financially powerful in years gone by, the company has since fallen on hard times, faced with profit slumps, billions in fines and legal challenges.
The latest development has concerned German Chancellor Angela Merkel, who has avoided committing to a controversial bailout plan by simply stating ‘I don’t want to comment’.
In the US, the ‘Greenback’ has risen against the Euro (USD EUR) but fallen against the Pound (USD GBP), following on from a momentous debate between Hillary Clinton and Donald Trump.
Clinton was generally thought to have made the better argument, which temporarily sent the US Dollar spiking up against its regular peers. The flipside to this, however, was that the US Dollar was soon devalued by an excessive amount of profit-taking among investors.
Since then, the US Dollar has made steady if slow positive movement.
Future GBP EUR USD Forecast: BoE, ECB and Fed Speeches Incoming
Central bank speeches will be prevalent in terms of Pound, Euro and US Dollar movement in the near-future, starting off with comments from Bank of England (BoE) official Andy Haldane, who is due to speak this evening. A notable dove, Haldane could trigger losses for the Pound if he raises the prospect of further UK interest rate cuts.
From the European Central Bank (ECB), President Mario Draghi is due to speak tomorrow morning, and may remark on the DB issue, as well as monetary policy.
The Fed’s contribution will come tomorrow afternoon, when Vice Chair Stanley Fischer makes a delivery.
Current GBP EUR, USD Exchange Rates
The Pound Euro (GBP EUR) exchange rate was trending in the region of 1.1597 and the Euro Pound (EUR GBP) exchange rate was trending in the region of 0.8622 today.
The Pound US Dollar (GBP USD) exchange rate was trending in the region of 1.2993 and the US Dollar Pound (USD GBP) exchange rate was trending in the region of 0.7696 today.
The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.1202 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.8930 today.