Strong Eurozone Ecostats Boost Euro (EUR) verses Pound (GBP) and US Dollar (USD)
Strong Eurozone data has strengthened the Euro today. Earlier, German industrial production was expected to have declined -1.6%, but instead grew by 2.2%. The latest Eurozone GDP figures have shown 0.3% growth in the last quarter of 2015 as predicted and a better-than-expected year-on-year (YoY) growth rate of 1.6%.
Earlier…
Pound Softens with Boris Back in the Headlines
London Mayor Boris Johnson is once again in the headlines after suggestions that he gagged his own staff to prevent them from openly supporting Britain’s membership of the European Union.
Just a day after appearing on the Andrew Marr show to lambast the alleged sacking of British Chambers of Commerce Director General John Longworth, who supports a ‘Brexit’, a leaked email from Johnson’s Chief of Staff warns employees not to express a contradictory opinion to that of the Mayor while in a professional capacity.
Yesterday…
The ‘Brexit’ continues to haunt the Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates today. A high-profile business figure has attacked David Cameron, accusing him of ‘hyperbole’, while the Euro is weakened by falling investor confidence and the US Dollar is bullish thanks to recovering sentiment towards the US economy.
‘Brexit’ Fears and Sliding Eurozone Business Confidence Keep Pound Sterling to Euro (GBP/EUR) Within Opening Levels
The head of the British Chambers of Commerce (BCC) has sparked a fresh new ‘Brexit’ argument after stepping down from his role due to his pro-leave stance. John Longworth breached the BCC’s impartial stance by telling reporters at a Chambers events that the UK would be better off outside of the European Union. His comments caused anger among many members of the Chambers as they do not represent the 60% majority who favour remaining in the EU.
After making a statement to clarify that he had stepped down voluntarily and was not suspended or pressured to leave by the UK government, Longworth gave an interview on Monday in which he attacked the Prime Minister. He told the Daily Telegraph that ‘It is highly irresponsible of the government of the country to be peddling hyperbole. If the government keeps peddling the line that it will be a disaster if we leave, which it actually won’t be, they are going to put the country in a position where it will be damaged if we do.’
The fresh controversy has weakened the Pound Sterling to Euro (GBP/EUR) exchange rate, although the common currency has been softened by news of low investor confidence. The Sentix Investor Confidence Index for March has shown another dip in sentiment, taking the index to 5.5, its lowest level since April 2015. Attitudes towards the current situation declined from 10.5 to 8.3, while expectations rose marginally, increasing from 1.5 to 2.8.
There is no UK or Eurozone data due out for the rest of the London session.
US Dollar to Pound Sterling (USD/GBP) Exchange Rate Bullish on Recovering Economic Hopes
The US Dollar is making a strong recovery today after Friday’s data spooked investors by showing a slower-than-expected rate of wage growth. However, today it seems that the markets are paying attention to the headline Non-Farm Payrolls figures, also released on Friday, which outperformed forecasts by nearly 50,000 jobs, easing recessionary fears. As Strategas Research Partners’ Don Rissmiller wrote in a research note on Sunday, ‘A better characterization of the US economic data today is that it has gone from “mixed to bad” to “mixed to good.”’
Two Fed officials, Lael Brainard and Stanley Fischer, are due to speak later today at separate events.
Current GBP, EUR, USD Conversion Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trading around 1.2927, while the Euro to Pound Sterling (EUR/GBP) exchange rate is trending in the region of 0.7734.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trading around 1.4166, while the US Dollar to Pound Sterling (USD/GBP) exchange rate is currently trending in the region of 0.7058.
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