The Pound Euro exchange rate has trended tightly today while Pound US Dollar trading has remained close to opening levels in the aftermath of the Bank of England (BoE) interest rate decision.
- GBP EUR rate falls to 1.19 – GBP USD rate trades at 1.24
- Pound demand limited after BoE freezes interest rates – Q3 GDP due next week
- Euro advances despite mixed PMI stats – ECB speech to close trading today
- US Dollar demand mixed in Fed rate hike aftermath – US housing stats expected later
The Euro has been a stable option for investors today, while the US Dollar has remained unstable after a brief Fed-induced rally.
Pound Sterling Exchange Rate News: BoE ‘Neutral Bias’ Triggers Investor Uncertainty
The Pound Euro exchange rate has declined marginally today, while Pound US Dollar trading has seen a fractional advance. The Pound’s flat movement is owing to yesterday’s unsatisfying outcome from the Bank of England (BoE) interest rate decision.
The BoE left UK interest rates on hold at 0.25%, as had been expected, with sentiment for the future remaining that the next rate decision could swing in either direction, depending on the circumstances.
The BoE disappointed markets, however, by predicting a lower trajectory of inflation in 2017, so long as the Pound remained a strong currency.
Euro Demand Rises on Eurozone PMIs while US Dollar Losses Follow Fed Rate Decision
The Euro has been a steady option for investors today, rising by 0.2% against the Pound and the US Dollar.
The latest Eurozone data has been supportive overall, with Thursday’s French and Eurozone PMIs in December printing positively in most cases.
Today, French business confidence in December has climbed, along with Italy’s October trade balance.
The US Dollar has been a decidedly mixed option, trending flatly against the Pound and dipping against the Euro.
Following the initial surge after Wednesday evening’s Fed interest rate hike, the US Dollar has fared poorly, declining overall due to profit-taking and concerns for what 2017 may hold for the US economy.
Future GBP EUR USD Forecast: Drop in UK GDP Next Week could see Sterling Slump
The next key data in the Pound, Euro and US Dollar exchange rates will come from the Eurozone, consisting of a speech from European Central Bank (ECB) official Vitor Constancio.
Due to give remarks in the early afternoon, Constancio is expected to speak in Madrid at the awarding of the German Bernacer Prize.
Following this from the US will the afternoon’s November building permits and housing starts figures, which are expected to reduce in both cases.
Looking ahead to the week to come, the last major UK announcement will be Friday’s finalised Q3 GDP growth rate figures.
These have already been predicted pessimistically, so a closing Sterling drop could come before Christmas next week if the figures show a slowdown on the quarter and the year.
Current Interbank Exchange Rates
The Pound Euro (GBP EUR) exchange rate was trending in the region of 1.19 and the Euro Pound (EUR GBP) exchange rate was trending in the region of 0.83 today.
The Pound US Dollar (GBP USD) exchange rate was trending in the region of 1.24 and the US Dollar Pound (USD GBP) exchange rate was trending in the region of 0.80 today.
The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.04 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.95 today.
