- Pound slumps overall as businesses step back from UK – Mounting concerns about future performance
- Euro climbs overall against peers – Gains come from unemployment data
- European Commission highlights overall confidence dip – EU Referendum cited as prime suspect
- German inflation rate data due shortly – UK to bring further confidence news tomorrow
The Pound has been a poor option for investment of late, having echoed earlier performances by sliding against a majority of its peers on alarming national data results.
The Euro has been charting an opposite course, having made respectable gains against many of its rivals on supportive unemployment results for both Germany and Spain.
UK Economic News: Pound Flops on Further Evidence of ‘Brexit’ Jitters
The Pound has been in the pits recently, having fallen by -0.7% against the Euro (GBP EUR), -0.8% against the Romanian Leu (GBP RON), -1% against the Hungarian Forint (GBP HUF) and -1.2% against the Israeli New Shekel (GBP ILS).
The source of this most recent downtrend for the Pound has been business news; in the first case, Lloyds has announced hundreds of branch closures and thousands of job cuts recently, while outdoor advertiser JCDecaux has announced its intentions to cut back on investment in the UK in the wake of the EU Referendum.
Adding salt to the wound has been Countrywide Plc, which has observed that:
‘We saw a slowdown in our retail and London residential businesses and, since the EU referendum result this has become more marked in London, the South East and expensive prime markets’.
Euro Triumphs on Trio of Supportive Post-‘Brexit’ Ecostats
In a diametrically opposite performance to the Pound, the Euro has been in high-demand against its rivals lately, with advances including 0.3% against the Canadian Dollar (EUR CAD) and the South African Rand (EUR ZAR), along with 0.8% against the Pound (EUR GBP). This is a significant improvement on last week’s movement.
One of the first pieces of good news came from Spain, which has seen a Q2 unemployment rate drop to an almost 6-year low. In addition, Germany has also seen the number of unemployed persons in July fall by a larger amount than had been predicted.
Continuing the trend of Eurozone support have been the results for Eurozone confidence in July; for business, services and economic sentiment, increases over previous scores have been seen, while as a clear sign of the rippling effect of the EU Referendum result, overall consumer confidence has dropped from -7.2 to -7.9.
Other highlights for the Eurozone today have included rising Greek business confidence in July along with a rise in Belgium’s monthly and annual July inflation rates.
Future GBP, EUR Forecast: German CPI Data due Shortly, More UK Confidence Data Out in Near-Term
The next economic announcements to watch out for will come from the Eurozone once again, with Germany bringing its annual and monthly preliminary inflation rate results for July in the early-afternoon. Forecasts have been for growth in both fields.
From the UK, tomorrow’s data will come extremely early when the pessimistically-predicted GfK consumer confidence result for July is announced.
Current GBP, EUR Exchange Rates
The Pound Euro (GBP EUR) exchange rate was trending in the region of 1.1868 and the Euro Pound (EUR GBP) exchange rate was trending in the region of 0.8427 today.
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