The Pound Sterling (GBP) has seen a spectacular fall from grace today, having started at an advantage of 0.5% against the Euro (GBP/EUR) and fallen most recently to -0.7% against the single currency (EUR).
Déjà vu for UK Interest Rate Requirements According to BoE
The next UK interest rate hike may be a long way off, according to both economists and Mark Carney himself. The central banker’s conditions are said to be inflation approaching the 2% mark, ‘sustained momentum relative to trend’ and a general stabilisation of the UK and China’s (among other) economies.
Predictions from economists have been immensely varied – some have put August as the likely date for the first hike of the year, while others remain adamant that the current conditions make a hike impossible until 2017 at the earliest.
A different camp believe that once the UK Referendum vote is done and dusted, then a rate hike will be a certainty. It is worth noting, however, that no firm date has been set for the vote and Prime Minister David Cameron is still yet to finalise the conditions of the Referendum with EU leaders.
Earlier…
The Pound Sterling (GBP) has fallen into a negative range against the Euro (GBP/EUR) this afternoon, having been put in this disadvantageous position by the first economic outlook of the year from Bank of England (BoE) Governor Mark Carney.
Doom and Gloom from Central Banker Radically Reduces GBP Appeal
In addition to outright stating that no UK interest rate hike would take place in the immediate future, Carney also outlined the dangers that the UK economy faced at present. These were mainly made up of worsening economic prospects in China (evidenced by the historically low growth rate posted earlier), the plunging price of crude oil and unfavourable conditions present in the UK’s Manufacturing and Construction sectors.
Earlier…
The Pound Sterling (GBP) has risen by 0.5% against the Euro (GBP/EUR) this morning, something potentially brought about by the Euro (EUR) failing to break out of the slump it found itself in for most of the previous day.
Potential Pressure Faced by German Economy as ‘Head’ of the Eurozone
Although today’s German CPI figures for December have not been particularly disappointing, the strain of apparently representing the Eurozone on a whole may be showing for Germany, which is now not only having to confront external scrutiny but also internal division over the ramifications of Angela Merkel’s refugee-admitting policies.
Earlier…
The Pound Sterling (GBP) has maintained its earlier lead against the Euro (GBP/EUR), although this has been reduced marginally to 0.3%.
Inauspicious Start for Sterling in 2016 as Asda Details Job Cuts
The Pound Sterling (GBP) has reeled somewhat today, in the wake of two successive job cut announcements. Although a loss of jobs ‘in the low hundreds’ from supermarket chain Asda doesn’t equate to much movement in the long run, coupled with the earlier news of job losses from Tata Steel, the riskiness of Sterling has increased notably.
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate has largely advanced today, despite very few economic announcements of any weight taking place for either currency.
GBP/EUR Exchange Rate News: Ta ta, Tata – UK Steelmaking Announces Further Job Cuts
The Pound Sterling (GBP) has been making surprisingly positive progress against its currency competitors today, with rises of 0.4% against the Euro (GBP/EUR), 0.6% against the Swiss Franc (GBP/CHF) and 1.1% against the Russian Ruble (GBP/RUB) being seen. Among Sterling’s relatively few losses have been a decline of -0.3% against the Mexican Peso (GBP/MXN) and a narrow trending against the South African Rand (GBP/ZAR). In a welcome change, these advances are a significant improvement on the previous week’s lackluster Sterling performance.
The day’s only UK data has been broadly positive, with the Rightmove House Prices in January showing a rise on the month and a minor slowdown on the year. In a less optimistic development, however, the UK’s steel making industry has been dealt a potentially crippling blow with the news that Tata Steel will be cutting over 1000 jobs due to the unfavourable conditions currently facing the industry in the UK.
Euro (EUR) Shows Mixed Trending Today as French President Tackles Unemployment
The Euro (EUR) has either been in a state of decline or trending narrowly today, for the most part. This is likely the result of few impactful Eurozone economic announcements occurring, along with a general air of concern due to the historically low price of crude oil.
One of the most notable developments today has been the news that French President Francois Hollande will be spending €2bn on a scheme designed to combat the current ‘state of economic emergency’ and lower the level of unemployment.
The Euro has fallen by -0.4% against the South African Rand (EUR/ZAR) today, along with greater losses of -0.5% against the Indian Rupee (EUR/INR) and -0.6% against the Pound Sterling (EUR/GBP) also being seen.
GBP/EUR Exchange Rate Forecast: Inflation Rate Stats Out Tomorrow for Both Currencies
Tomorrow will see the economic week begin properly, with the UK getting a head start with CPI figures for December out in the morning. Current forecasts are for a rise from 0.1% to 0.2% for the base annual figure, but a reprint of 1.2% for the Core yearly outcome.
Shortly after this will be the Eurozone’s Consumer Price Indices for December, which are largely expected to reprint based on previous results. In addition, around the same time will be the announcement of the German ZEW Survey of Economic Sentiment for January, which was forecast to decline at the time of writing.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3134 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7615 today.
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