- UK currency slips against peers after Gfk score worsens
- Euro mixed after spate of high-impact announcements
- Eurozone unemployment down, along with inflation rate
- BoE’s Cunliffe due to speak later today
The Pound Sterling (GBP) has been thrown into turmoil today, having been weakened against its peers by a worse-than-expected outcome for a confidence survey covering the April period.
The Euro (EUR) has fluctuated across the board, with the gains recorded being attributed to earlier Eurozone economic announcements.
UK Economic News: BoE Warning and Gfk Outcome Weaken Pound (GBP) Today
The Pound (GBP) has lost out for the most part against the Euro (EUR) and the rest of its peers today, with declines coming from domestic data and Bank of England (BoE) forecasts.
In the former case, the UK’s ecostats have been fairly disheartening to investors. The Gfk consumer confidence survey for April has fallen from 0 to -3 against predictions of a -1 outcome, while the Lloyds business barometer for April has shown a reduction from 43 to 38.
Closing off UK ecostats have been rising consumer credit and falling mortgage approvals in March.
Another factor that has weighed on the Pound’s appeal has come in the form of comments from BoE Governor Mark Carney, who has been making further statements on the effects the UK Referendum is having on the national economy. Speaking to the Stockport Express, Carney has stated that:
‘In the very short term the economy appears to be slowing, probably related to issues around the Referendum’.
The Pound has fallen by -0.4% against the Euro (GBP/EUR) today and by -0.4% against the Swiss Franc (GBP/CHF) and -1% against the Japanese Yen (GBP/JPY).
Euro (EUR) Seesawed by Latest Eurozone Data
The Euro (EUR) has managed to climb by 0.3% against the Australian Dollar (EUR/AUD) and by 0.3% against the Pound Sterling (EUR/GBP) and the Indian Rupee (GBP/INR) today, although these gains have come alongside losses of -0.4% against the South African Rand (EUR/ZAR) and 0.6% against the Japanese Yen (EUR/JPY).
Economists have been spoilt for choice when it came to Eurozone data today; ecostats have included the falling German retail sales for March and a falling Eurozone unemployment rate for the same month. Eurozone GDP has either risen or reprinted on the first quarter, although this has been tempered by a falling April core and estimated level of annual inflation.
Future GBP, EUR Forecast: BoE Speech due Shortly, UK Elections Scheduled Next Week
The last remaining UK economic event this week appears to be an imminent speech from BoE Deputy Governor John Cunliffe.
Looking ahead to the coming week, the Pound (GBP) may be shifted by Tuesday’s manufacturing PMI for April, as well as Wednesday and Thursday’s respective construction and services PMI variants.
Of particular note is Thursday, when local elections will be taking place across the country but also for the coveted seat of London Mayor.
The Euro (EUR) may be moved by Wednesday’s European Central Bank (ECB) non-monetary policy meeting, which will occur as the finalised April composite and services PMIs are announced.
Later on in the day, the Eurozone retail sales figures for March will make an appearance.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2824 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7798 today.
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