Pound Sterling (GBP) has remained at its ‘usual’ -0.2% against the Euro (GBP/EUR) today with the various developments seen so far failing to inspire investors in the Pound to take action.
Mixed Outcome from UK Referendum Talks Means No Real Shift in GBP Appeal Today
The UK news of the day has revolved around PM David Cameron’s initial attempts to win over fellow EU leaders to the conditions of the UK Referendum draft; so far, Denmark has been in clear approval but Poland has given a ‘maybe’ response, stating that further discussion is required.
Earlier…
The Pound Sterling (GBP) has failed to advance against the Euro (GBP/EUR) this afternoon, mainly because the Euro (EUR) has not been sufficiently devalued by the US data of the afternoon.
NFP Shortfall Balanced by Fall in US Unemployment Level Today
While earlier hopes were that the US Dollar (USD) would be strengthened considerably by a forecast-exceeding change in non-farm payrolls result for January, the reality saw the figure post at a lower-than-expected 151k instead of 190k. This was balanced out overall by the US Unemployment Rate falling from 5% to 4.9%; the net effect of this ‘Buck’ movement was that the Pound (GBP) failed to clinch a lead against the Euro (EUR).
Earlier…
The Pound Sterling (GBP) has trended in a tight range against the Euro (GBP/EUR) today, with the likely cause being the impending US Change in Non-Farm Payrolls result for January.
Importance of US NFP Data Cannot be Understated, says Economist
The coming hour will bring the NFP result for the US, which according to RBC economist Adam Cole is of paramount status to the value of the US Dollar (USD), both into the weekend and beyond.
Cole has stated that: ‘I think having seen such a huge derating of Fed rate hike expectations this week, it’s hard to overstate how important this release is’.
Earlier…
Pound Sterling (GBP) has slumped by -0.2% against the Euro (GBP/EUR) this morning, something that has mainly been caused by the lingering effect of yesterday’s calamitous Bank of England (BoE) Interest Rate Decision.
Broadbent’s Optimism Fails to Reassure GBP Investors This Morning
The Pound’s (GBP) losses today have been scarcely relieved by a round-trip of comments made by BoE Deputy Governor Ben Broadbent, who has claimed that the impending referendum has done little to limit investment in the UK and that the plummeting oil prices are of overall benefit to the nation.
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate has dived today, as have most of the Pound’s (GBP) other major pairings. The Euro (EUR), on the other hand, has been bolstered in its performance by an unstable economic situation in the US.
GBP/EUR Exchange Rate News: (Don’t) Watch This Space, says BoE’s Carney
Pound Sterling (GBP) has crashed against the opposition today, having fallen by -0.8% against the Euro (GBP/EUR), -1% against the New Zealand Dollar (GBP/NZD), -1.1% against the Norwegian Krone (GBP/NOK) and by -1.3% against the Singapore Dollar (GBP/SGD).
While Sterling was faring poorly before the BoE Interest Rate Decision was made today, its already flagging condition worsened considerably after the full details of the BoE’s rate freeze emerged. The forecast had been for the usual 8-1 rate freeze with Ian McCafferty being the sole hawk of the pack, but today saw McCafferty turn dove and vote against a hike, making it a full house against such a decision.
The Pound dive-bombed shortly after the news came in, which was so bad that some economists pushed their expectations for the next hike all the way ahead to 2018. In a speech after the announcement, Governor Mark Carney repeated the usual mantra of waiting until the time was right and essentially banished any concept of forward guidance by stating ‘[the BoE MPC] won’t be bound by what we’ve said previously’.
Euro (EUR) Seizes Available Opportunities Today to Rise against GBP and Others
The Euro (EUR) has made major gains of 1% against Pound Sterling (EUR/GBP) and 1.1% against the US Dollar (EUR/USD) today, mainly because of disadvantageous circumstances in both the UK and the US.
In the latter nation’s case, yesterday’s poor ISM Non-Manufacturing Composite for January fell from 55.8 to 53.5, which combined with the existing negative opinions over the US jobs market to send the US Dollar (USD) diving and the Euro soaring as a result due to the unbalanced nature of ‘Cable’ trading.
GBP/EUR Exchange Rate Forecast: Sterling Unlikely to Recover Before Weekend, German Data due Tomorrow
No further high-impact UK data remains today, therefore the next movement likely for the pairing will come tomorrow morning when Germany’s Factory Orders for December are announced. Although expectations are for a decline of -0.5% on the month and -1.4% on the year, this may not be enough to trigger a Sterling (GBP) uptrend, as has been seen previously in the week, given the overwhelmingly negative response had to the BoE’s news today.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3055 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7660 today.
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