- Common currency remains soft on worrying Eurozone predictions
- Pound Sterling retains unnatural strength against competitors
- Variety of UK local elections take place across the country
- UK election results due from Friday to Sunday
Euro (EUR) movements have remained unfavourable today, with the latest movements of note including losses of over -1% against the Australian (EUR/AUD) and Canadian (EUR/CAD) Dollars. A -0.6% drop against the Pound (EUR/GBP) has come alongside a 0.5% rise against the Polish Zloty (EUR/PLN).
Against the odds, the Pound (GBP) has still managed to remain strong against its rivals, in spite of not having any real positive data to show for it. Advances have included 0.6% against the Euro (GBP/EUR), 0.7% against the Swiss Franc (GBP/CHF) and 1.1% against the Polish Zloty (GBP/PLN). Against the Russian Ruble (GBP/RUB), however, Sterling’s condition has worsened to -2%.
The Euro (EUR) has generally slumped against its competitors of late, owing to widespread concern over the future stability of the EU.
The Pound (GBP) has defied conventional logic today and risen against its peers, despite the third instance of poor PMI results in as many days.
Eurozone Economic News: ECB Rhetoric Disappoints Investors Today
The Euro (EUR) has effectively tanked against its rivals, making losses of -0.7% against the Australian Dollar (EUR/AUD) and the Canadian Dollar (EUR/CAD), as well as a -0.4% drop against the Pound Sterling (EUR/GBP).
The latest announcement from the European Central Bank (ECB), its bulletin, has been a run-of-the-mill affair; the central bank has stated that:
‘Domestic demand, in particular, continues to be supported by the ECB’s monetary policy measures. The risks to the Euro area growth outlook still remain tilted to the downside’
Pound Sterling (GBP) Soft ahead of Latest PMI Printings
The Pound (GBP) has managed to advance against the Euro (EUR) and a number of other peers recently, owing to a potentially positive reaction to the latest falling PMI printings.
Yesterday’s damaging UK PMI offering in question concerned construction in April, which fell from 54.2 to 52 points.
Today has brought falling services and composite PMIs for the same month; despite both fields dropping, the Pound has actually rallied. This may be on account of the figures remaining above the contraction range, especially in the case of the load-bearing services industry.
Notable movements for the Pound have included rises of 0.4% against the Euro (GBP/EUR) and the Swiss Franc (GBP/CHF) but a more pronounced loss of -0.3% against the Australian Dollar (GBP/AUD) and -1.1% against the Russian Ruble (GBP/RUB).
Future EUR, GBP Forecast: ECB Speeches due Today along with UK Elections
The next events likely to have an impact on the EUR/GBP exchange rate will come from the Eurozone primarily, in the form of a pair of European Central Bank (ECB) speeches.
First up this morning will be a delivery from Bank of Italy Governor Ignazio Visco, while the afternoon will bring with it words from ECB Vice President Vitor Constancio.
On a more general note, the UK local election are taking place over the course of the day, although the impact-generating announcements of the results are not expected to come until later on in the day, if not overnight.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7889 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2677 today.