The Pound has failed to make much in the way of positive movement against the Euro or US Dollar today, on account of still-unresolved concerns about how the UK will handle ‘Brexit’ negotiations with the EU.
- GBP EUR exchange rate at low of 1.16 – GBP USD trending around monthly low at 1.30
- Pound softened by ‘Brexit’ remarks – UK GDP stats due Friday
- Euro positive on rising Eurozone confidence – Eurozone unemployment results incoming
- US Dollar makes steady gains on upward Q2 GDP revision – Limited US data ahead
The Euro has progressively appreciated on rising Eurozone sentiment scores, while the US Dollar’s gains have partly stemmed from a surprise increase in the cost of crude oil.
Pound Sterling Exchange Rate News: Widespread Uncertainty for Sterling after ‘Brexit’ Speculation Takes Hold
The Pound has largely failed to rise against the Euro and US Dollar during trading today, on account of a near-continuous stream of pessimistic predictions and statements coming out about the UK’s future negotiations with the EU.
While Trade Secretary Liam Fox has stated that the UK has a ‘golden opportunity’ to establish new trade links, Italian Prime Minister Matteo Renzi has conversely offered a gloomier picture, stating that;
‘The decision of the British people is a bad decision in my mind. And I am sad for that. It will be impossible to give to British people more rights than other people outside the EU’.
Steady Positive Movement Seen for Euro and US Dollar on Confidence and OPEC News
The Euro has made steady positive progress during Thursday’s trading session on account of earlier supportive ecostats, while the US Dollar has continued to be in reasonably high demand due to news from OPEC.
In the Euro’s case, an overall appreciation has been triggered by a number of Eurozone confidence figures, including business confidence and economic sentiment, rising above forecasts in many cases. Also assisting were Germany’s rising inflation figures for September, which reassured investors that ECB policies were having a positive effect.
The US Dollar’s supportive news has partly come from overseas, where a meeting between OPEC oil producers has resulted in a tentative agreement to limit production. This has had the knock-on effect of raising the value of crude oil, which has in turn increased the appeal of the US Dollar due to the US’s oil exporting activities.
Additionally, US finalised GDP results for Q2 saw the odds of a December Fed interest rate hike increase considerably.
Future GBP EUR USD Forecast: Movement Possible on UK GDP, Eurozone Unemployment and US PMI
The UK and Eurozone are expected to bring the most high-impact data announcements tomorrow, consisting respectively of the Q2 GDP growth rate figures and the unemployment and inflation rate results for August and September.
UK GDP is predicted to rise on the month and the year for the finalised figures, from 0.4% to 0.6% and from 2% to 2.2% respectively.
Both the Core and non-Core Eurozone inflation rate flash figures are expected to rise, while unemployment has been optimistically forecast to drop from 10.1% to 10%.
From the US, input will come tomorrow when the Chicago PMI for September is announced, which will arrive shortly before the finalised University of Michigan consumer sentiment result for the same month. Positive outcomes have been forecast for both releases.
Current GBP, EUR, USD Exchange Rates
The Pound Euro (GBP EUR) exchange rate was trending in the region of 1.1549 and the Euro Pound (EUR GBP) exchange rate was trending in the region of 0.8660 today.
The Pound US Dollar (GBP USD) exchange rate was trending in the region of 1.2982 and the US Dollar Pound (USD GBP) exchange rate was trending in the region of 0.7703 today.
The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.1242 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.8898 today.
