Pound Sterling (GBP) has fallen by -0.3% against the Euro (GBP/EUR) and -0.4% against the US Dollar (GBP/USD), with the news from the stock market wires failing to calm the collective nerves of world investors.
Stock Market Consolidation comes during Turbulent Times for UK Economy
The most recent wave of news to rock the GBP boat has come from the stock markets, with the announcement that the London Stock Exchange may be merging with Deutche Borse in the future.
David Cheetham of XTB.com has commented on the development, stating: ‘The timing of this development appears coincidental as the possibility of a Brexit has become increased in recent days now that a referendum date has been set and Boris has joined the Out campaign’.
With this in mind, however, it seems spectacularly poor timing given that such news can only exacerbate investor concerns over the consequences of an in/out result for the UK Referendum.
Earlier…
The Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates have both slipped today, mainly due to the Pound (GBP) repeatedly being hit by lingering detrimental events.
GBP/EUR, GBP/USD Exchange Rate News: Carney’s Stimulus Comments Sow Discord Among Investors
On a day peppered with speeches from central bankers, the Pound (GBP) has lost out in the draw, having been stuck with a number of evasive or downright dovish comments from the Bank of England’s (BoE) Governor Mark Carney, along with other such contributions from his fellows.
Carney et al are currently testifying in the Houses of Parliament regarding various aspects of policymaking and forecasting, although the tone so far has done little to inspire confidence in a strong Pound in the future. On the key topic of a ‘Brexit’ outcome, Carney has remained tight-lipped, simply stating that the bank will respond to an ‘In’ or ‘Out’ vote ‘exactly like we treat any other political event’.
The most alarming response, however, was the contribution from Carney and Martin Weale who stated that in order to simulate the UK economy, they could cut interest rates to zero or expand the current asset purchase target.
The Pound has dipped against the Euro (GBP/EUR) and US Dollar (GBP/USD) today, while printing greater losses of -0.4% against the Israeli New Shekel (GBP/ILS) and -1% against the Japanese Yen (GBP/JPY).
Euro (EUR) Slumps Today while US Dollar (USD) Displays Volatility
The Euro (EUR) has been a fairly unappealing prospect today, having been devalued by the earlier German IFO and GDP results for February and the fourth quarter respectively.
In the former case, the rise for the current assessment was countered by a fall for business climate and expectations, while in the latter, the reprinted figures failed to offer any new hope among investors. The Euro has risen marginally against Pound Sterling (EUR/GBP) today but fallen by -0.3% against the US Dollar (EUR/USD).
The US Dollar (USD) has been decidedly mixed today, having advanced by 0.3% against the Euro (USD/EUR) and Pound Sterling (USD/GBP) but fallen by -0.8% against the Japanese Yen (USD/JPY).
Yesterday, the ‘Buck’ was affected by the release of a White House report that did nothing to break the current stalemate. While it highlighted a strong bounce back for the economy last year, this was nonetheless checked by forecast income inequality and a global slowdown in world markets.
GBP, EUR, USD Exchange Rate Forecast: US Confidence Score &, Home Sales Data Ahead
With the BoE testimony ongoing and a speech from the European Central Bank’s (ECB) Daniele Nouy due shortly, it remains for the US to deliver the next real piece of impactful data today. At the time of writing, this was the pessimistically forecast consumer confidence score for February; later on, the misery is set to continue with the delivery of the negatively-predicted January existing home sales.
Current GBP, EUR, USD Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2819, the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7802, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.4089, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.7098, the Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.0994 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9099 today.
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