Pound Sterling (GBP) has trended in a narrow range against the Euro (GBP/EUR) and other competitors this morning, with the probable cause being anxiety about the impending questioning of PM David Cameron.
‘Was it Worth It?’ – The Likely Question from Many MPs Today over UK Referendum Draft
The Pound’s (GBP) uninspiring performance today can be attributed to the fact that just a day after submitting the draft terms for the UK Referendum to EU leaders, Cameron is set to face a flurry of questions in the Houses of Parliament today, with most of the fire predicted to come from his own Tory backbenchers.
While a PM facing questions is nothing new, the sheer volume of doubt assembled against the hard-won draft will likely be a difficult test of Cameron’s defensive capabilities.
Earlier…
The Pound Sterling (GBP) has lessened its loss against the Euro (GBP/EUR) today to -0.3%, something likely due to the earlier publication of the draft UK Referendum document.
Inevitably Mixed Reception Meets Referendum Development as Details Continue to Come In
As might be expected, critics of the UK’s relationship to the European Union have weighed in on the document’s contents, calling it ‘watered down’ and inadequate as a piece of acceptable legislation. On the other hand, ‘In’ campaign supporters have praised the (eventual) publication of the document and welcome the step along in the UK Referendum process that it represents.
Earlier…
The Pound Sterling (GBP) has fallen by -0.6% against the Euro (GBP/EUR) this morning, something that has largely been caused by a highly supportive development in the Eurozone.
Greater than Expected Drop in German Unemployed Allows Surprising Reduction of Rate Today
The Euro (EUR) has been given an early lead against the Pound (GBP) and others this morning, thanks to Germany’s Unemployment Rate for January falling from 6.3% to 6.2% against forecasts. While only -8k had been expected to have been removed from the unemployed figure, this was soundly exceeded by the actual -20k printing.
Earlier…
The Pound Sterling (GBP) has recovered markedly since earlier, having established a 0.3% gain against the Euro (GBP/EUR). This supportive movement has partly been caused by optimism regarding the ongoing UK Referendum negotiations.
Will PM Search for a Better Deal or Save Face and Accept ‘Emergency Brake’ Today?
The value of Pound Sterling (GBP) in the near future is likely to be affected by any announcement out of Downing Street regarding the Referendum situation. On the one hand, the PM could accept the supposedly detrimental conditions that have currently been put forward and likely secure a June/July vote, but on the other, extending the negotiations further is sure to invoke the ire of the PM’s critics and push the vote date back further, although potentially with the benefit of establishing more favourable terms of reform.
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate has fallen marginally today, although the Pound (GBP) has managed to claim a large number of advances elsewhere. The Euro (EUR) has been similarly uptrending, mainly thanks to global economic events.
GBP/EUR Exchange Rate News: UK Referendum Negotiations see February Finalisation Hang in the Balance
The Pound Sterling (GBP) has been making a highly respectable performance in a majority of its currency pairings today, having seen gains of 0.4% against the US Dollar (GBP/USD), 0.7% against the Australian Dollar (GBP/AUD), 0.8% against the Canadian Dollar (GBP/CAD) and 1.8% against the South African Rand (GBP/ZAR). A fractional loss has been recorded against the Euro (GBP/EUR).
The cause for this positive movement is thought to be the morning’s UK Manufacturing PMI for January, which has defied expectations of a decline to 51.6 by rising from 52.1 to 52.9.
In a less supportive, ongoing development, it has been reported that Prime Minister David Cameron is at a critical juncture in the UK Referendum negotiation process, especially if he wants to meet the loosely imposed February deadline for hammering down the Referendum’s terms with EU leaders. According to European Council President Donald Tusk, the PM has until tomorrow to submit a draft referendum plan to the leaders of the EU; from that point, a majority must agree with the terms if the ever-elusive national vote is to take place in either June or July this year.
While the PM has little to lose materially if the deadline is missed or the current terms are rejected, every delay on the long road to a vote has the effect of damaging his credibility and further reducing confidence in the UK currency by extension.
Euro (EUR) Soars as Chinese Instability Bolsters Single Currency’s Global Standing
The Euro (EUR) has made sizable gains against most of the competition so far today; this has equated to a minor increase against the Pound Sterling (EUR/GBP), 1.2% against the Australian Dollar (EUR/AUD), 1.4% against the Canadian Dollar (EUR/CAD) and 1.9% against the South African Rand (EUR/ZAR).
The morning’s Eurozone Manufacturing PMIs for January were largely negative in nature, therefore the Euro’s rise can be attributed to the US Dollar (USD) being made less appealing by the notable contraction recorded for the Chinese Manufacturing PMI in December.
GBP/EUR Exchange Rate Forecast: Draghi Speech and German Unemployment Next Up from Eurozone
The near future will mainly be comprised of Eurozone economic events, given that the next US data isn’t due out until tomorrow afternoon.
The Eurozone’s EUR/USD exchange rate contributions include a speech from European Central Bank (ECB) President Mario Draghi in the near future and Germany’s positively forecast January Unemployment Rate results scheduled for release tomorrow morning.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3149 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7607 today.
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