The Pound has failed to shake off the weekend’s negative investor sentiment, having fallen heavily against its regular peers due to Prime Minister Theresa May’s concerning lack of clarity over Brexit strategies.
- GBP EUR rate drops to 1.14 – GBP USD falls to 1.21
- Pound remains soft on Brexit concerns – ‘Hard Brexit’ fears grow on Corbyn comments
- Euro aided by French production posting – US Dollar stable despite nepotism claims
- GBP recovery possible on incoming production figures – Increase in unsold US goods expected
The Euro has been an in-demand option thanks to forecast-beating French industrial figures. The US Dollar has risen against the Pound, but been close to opening levels against the Euro after a controversial appointment by President-Elect Trump.
Pound Euro and Pound US Dollar Exchange Rates Weakened by Brexit Fears
In what feels like a recurrent development, demand for the Pound has been shattered today by marketplace uncertainty about what kind of Brexit the Government will be aiming for.
The latest debacle began when Prime Minister Theresa May made vague statements in a Sky interview on the weekend; Monday saw the Pound crash due to assumptions that May had been indicating a preference for ‘Hard Brexit’.
Despite May denying that she was aiming to pull the UK out of the EU single market, investors remained unconvinced, and the Pound has stayed down as a result.
Further fuel has been added to the ‘Hard Brexit’ fire by Labour leader Jeremy Corbyn, who stated that he was changing his stance on immigration, which led to conclusions that Labour support for tighter travel controls would raise the odds of losing single market access.
Euro Appeal Rises on French Data Delight, US Dollar Trends Tightly as Kushner Appointment Rankles Democrats
The Euro Pound exchange rate has risen by 0.2% today, while a more minor advance has been seen in the Euro US Dollar exchange rate.
The latest source of Eurozone news has been France’s November industrial production results, which have risen far above forecasts from -0.1% to 2.2%.
The US Dollar has risen against the softened Pound today, but ticked down against the Euro due to uncertainty about the legality of the latest decision by President-Elect Donald Trump.
Trump has appointed Jared Kushner, his son-in-law, in an advisory position; something that is considered to fly in the face of US Presidential anti-nepotism laws.
Future GBP EUR, GBP USD Forecast: Potential for Pound Resurgence on Wednesday’s Production Stats
While the current week has not been particularly positive for the Pound, Sterling could rise against the Euro and US Dollar on Wednesday morning, given current forecasts for production and construction results.
Out at the same time, November’s construction output results are due to rise annually, as are industrial and manufacturing production figures for the same month. A potential hurdle may be the morning’s November trade balance, which may show a major deficit expansion.
Notable Eurozone news on Wednesday will be Greece’s December inflation rate results, which dropped in November.
US economic data out this afternoon will consist of wholesale inventories for November, which are expected to show a damaging rise in unsold goods.
Current Interbank Exchange Rates
The Pound Euro (GBP EUR) exchange rate was trending in the region of 1.14 and the Euro Pound (EUR GBP) exchange rate was trending in the region of 0.87 today.
The Pound US Dollar (GBP USD) exchange rate was trending in the region of 1.21 and the US Dollar Pound (USD GBP) exchange rate was trending in the region of 0.82 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.