The Pound Sterling’s (GBP) faring against the Euro (GBP/EUR) has declined significantly today, with the UK currency slipping to -0.6% in the wake of disappointing news from Hinkley Point.
A Radioactive Bottomless Pit? UK Power Plant Decision Stalls Once Again on Funding
The Pound Sterling’s (GBP) softness today has partly been caused by yet more bad news out of Hinkley Point, where in spite of a sizable 33% investment from China last year, reports are that yet more money is needed to actually complete the project.
The Pound Sterling (GBP) has failed to reverse its faring against the Euro (GBP/EUR) today, having remained at -0.3% against the single currency (EUR). This comes after a raucous round of Prime Minister’s Questions, which dredged up the now infamous news of Google’s potential tax avoidance.
MEP Intervention may Force Chancellor’s Hand in Coming Months
The main focus of today’s PMQs was the apparently humiliating amount of tax paid by tech giant Google, which was once again defended by the PM who said that the amount calculated to be owed was generated ‘quite rightly…independently by HMRC’.
The issue has hardly been put to bed, however, as the news has emerged that Members of the European Parliament are anxious to question Osborne personally over whether the agreement was in line with national tax laws and procedures.
The Pound Sterling (GBP) has made a marginal loss against the Euro (GBP/EUR) today, primarily due to the morning’s UK Nationwide House Prices for January falling compared to previous figures.
No Change for Day’s Eurozone Publications makes Euro (EUR) More Attractive Prospect
The Euro (EUR) has had a middling performance so far today, although this is largely on account of the morning’s German Gfk Consumer Confidence Survey for February showing no change from 9.4 points, not that a shift had been forecast beforehand.
The Pound Sterling (GBP) has managed to shrug off its earlier losses, at least against the Euro (GBP/EUR), against which the Pound has made a 0.3% gain.
Current Optimism for GBP after Carney’s Conference with Parliament
The advances recorded by the Pound (GBP) today can only be considered as having come from the Treasury Select Committee today, which has now concluded its questioning of Bank of England (BoE) Governor Mark Carney.
Carney has largely given supportive answers to those asking them; while not exactly ebullient about the UK economy, the general message was ‘It could be worse’.
The Pound Sterling to Euro (GBP/EUR) exchange rate has advanced ever-so-slightly today, although elsewhere Sterling (GBP) has been something of an undesirable prospect to investors.
GBP/EUR Exchange Rate News: Carney Talks Interest, Longevity and ‘Brexit’ Today
The Pound Sterling (GBP) has largely declined against the competition today, with some of the many losses being by -0.6% against the Australian Dollar (GBP/AUD), -0.7% against the Canadian Dollar (GBP/CAD) and-0.9% against the volatile Russian Ruble (GBP/RUB). On the plus side, however, Sterling has managed to make gains of 0.2% against the Euro (GBP/EUR) and 0.3% against the Swiss Franc (GBP/CHF). This movement against the Euro (EUR) is largely a repeat of previous results.
With no direct economic publications to refer to, investors and economists alike have instead had to refer to the answers given by Bank of England (BoE) Governor Mark Carney during his attendance with a Treasury Select Committee (TSC).
Carney has responded to a question regarding the potential UK exit from the Eurozone with caution and has given a similarly non-committal answer to the question of whether he intends to stay at the BoE during a 5 or 8 year term. Regarding the current global economic crisis involving oil prices, Carney saw the recent Fed interest rate hike as a contributing factor, but not the sole cause.
Euro (EUR) Struggling Today despite Previous Draghi Input
The Euro (EUR) has put on an uninspiring performance against many of its peers today, with losses of -0.2% against the Pound Sterling (EUR/GBP), -0.7% against the Australian Dollar (EUR/AUD) and -0.8% against the Canadian Dollar (EUR/CAD) being seen.
More supportively, an advance of -0.6% against the Polish Zloty (EUR/PLN) has also been recorded.
The Euro’s value in the past 24 hours has been chiefly determined by yesterday’s speech from European Central Bank (ECB) President Mario Draghi, who fiercely defended the ECB from critics and reiterated that the central bank would pull out all the stops to ensure the stability of the currency bloc.
The defence briefly triggered a Euro uptrend, although today this state has largely ebbed away and seen the Euro slump back down.
GBP/EUR Exchange Rate Forecast: Further Carney Comments Ahead?
With no UK data due until tomorrow, any particularly blunt comments from Carney are the only likely source of movement for Pound Sterling (GBP) before then. The Eurozone is similarly devoid of data for the rest of the day, therefore investors are likely to be forced to rest on their laurels until tomorrow morning in this case as well.
The first announcements will come from the UK, in the form of the Nationwide House Prices for January, which are expected to rise from 4.5% to 4.7% on the year.
For the Eurozone, movement is most likely to be generated by the German Consumer Confidence Survey for February which is due out a little later.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3161 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7599 today.