The Pound Sterling (GBP) has fallen by -0.6% against the Euro (EUR) and made no progress against the US Dollar (GBP/USD) today; this comes after Federal Reserve Bank of Atlanta President Dennis Lockhart has repeated his hawkish forecast for a US interest rate hike before the end of the year.
Fed Holds the Headlines Tomorrow as UK and Eurozone Data is Thin on the Ground
The Pound Sterling (GBP) has no economic releases due tomorrow and the only Eurozone pieces of data have been classed as low-impact. As a result, the speeches of Fed officials Janet Yellen, James Bullard and Esther George today and tomorrow will be the deciding factors in the GBP/USD pairing.
The Pound has fared incredibly poorly against most of its rivals today; this came about after French Economic Minister Emmanuel Macron raised serious doubts over the validity and viability of the British government’s demands in the ongoing ‘Brexit’ negotiations.
Earlier…
The Pound Sterling (GBP) has dropped by -0.7% against the Euro (GBP/EUR) today and by -0.3% against the US Dollar (GBP/USD); this has come mainly from lingering discontent over yesterday’s expansion of the UK debt level.
US Manufacturing PMI to Determine GBP, EUR, USD Movement Next
The Pound Sterling’s (GBP) decline against the Euro (GBP/EUR) and the US Dollar (GBP/USD) today can mainly be attributed to a lack of UK data today forcing speculators to rely on yesterday’s negative UK results. The Euro (EUR) has partially benefitted from a glut of Eurozone PMIs today, although the large number of negative figures prevented a true Euro rally from occurring. The US Dollar (USD) has been supported by a second speech from Dennis Lockhart in as many days; Lockhart was once again hawkish towards the US economic recovery and may repeat the performance for a third time tonight.
The most immediate affecter of the trinity, however, is the US Manufacturing PMI for September; a tiny decline from 53 points to 52.8 has been predicted.
Earlier…
The Pound Sterling (GBP) has declined equally against the Euro (GBP/EUR) and the US Dollar (GBP/USD) today following the news that UK governmental borrowing has increased beyond expectations. The Euro (EUR) and the US Dollar (USD) have had average performances, although this may be set to change over the next few days.
GBP/EUR, GBP/USD Exchange Rate News: Taking Too Much Ruins Sterling’s Reputation against Rivals
The Pound Sterling (GBP) has fallen by -0.3% against the Euro (GBP/EUR) and the US Dollar (GBP/USD) today and a mostly negative performance has been seen in most other pairings. The Pound has dropped by -0.3% against the Israeli New Shekel (GBP/ILS), -0.5% against the Hungarian Forint (GBP/HUF) and by -0.8% against the Japanese Yen (GBP/JPY); on the other side of the equation, Sterling’s few notable gains have been made up of 0.3% against the Mexican Peso (GBP/MXN) and 0.6% against the South African Rand (GBP/ZAR).
The biggest detrimental factor to the Pound today has been the UK Public Sector Net Borrowing (Excluding Banking Groups) figures, which have both increased above estimates. Ross Campbell, Director of Public Sector Policy at the ICAEW, said that ‘Sorting our public finances depends on robust tax receipts, so it is disappointing to see corporation and income tax revenues decrease. The weakening global economy could also have a significant impact on tax receipts in the coming months, which would only make the situation worse.’
Euro makes Minor Gains as US Speculators Prepare for Another Month of FOMC ‘Will-They Won’t-They’
The Euro (EUR) has had an acceptable performance against the competition today, seeing a 0.3% rise against the Pound Sterling (EUR/GBP) and the Australian Dollar (EUR/AUD), with a 0.4% advance against the Indian Rupee (EUR/INR) and a 1% gain on the South African Rand (EUR/ZAR) topping off the single currency’s gains today. Against the US Dollar (EUR/USD), the Euro has trended narrowly, while the greatest loss has been by -0.5% against the Japanese Yen (EUR/JPY).
The Euro has been given mixed blessings from results recently; the re-election of Greek Prime Minister Alexis Tsipras has brought the promise of stability to the Hellenic nation, while a warning against European Central bank (ECB) complacency by Bank of Italy (BoI) Chief Economist Eugenio Gaiotti has dampened Eurozone prospects today.
The US Dollar (USD) has trended narrowly against the Euro (USD/EUR) today and has mirrored the Euro’s gains elsewhere. A 0.3% rise has been seen against the Pound Sterling (USD/GPB), the Indian Rupee (USD/INR) and the Norwegian Krone (USD/NOK), while a rise of 0.8% against the South African Rand (USD/ZAR) has been the best result today.
The US Dollar has been helped mostly by the words of Fed Bank of Atlanta President Dennis Lockhart yesterday; as a Fed interest rate hike could be possible in October or December, all eyes (and ears) will be on the statements of Federal Reserve Officials. Lockhart’s most supportive line was: ‘As things settle down, I will be ready for the first policy move on the path to a more normal interest-rate environment. I am confident the much-used phrase ‘later this year’ is still operative.’
GBP/EUR, GBP/USD Exchange Rate Forecasts: Spent UK Data Means US Results may be Beginning of Sterling’s Downfall
The Pound Sterling (GBP) has few economic releases of note left today and tomorrow, therefore the only remaining high-impact economic publication for the UK this week is the BBA Loans for House Purchases figure for August.
Ahead of this, the monthly US House Price Index for July is out today, along with the Eurozone Consumer Confidence score for September an hour later. Forecasts have a 0.2% rise in the former figure, while a -0.1 point decline from -6.9 to -7 is expected with the latter. In addition, during the week Fed officials will be giving speeches throughout the US on the state of the economy.
Current GBP, EUR, USD Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3830, the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7226, the Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1170, the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.8956, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5445 and the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6470 today.
Comments are closed.