The Euro has managed to creep up against the Pound during trading today, in spite of the Eurozone PMIs flashes for September painting a mixed picture for the single currency bloc.
- EUR GBP rate up to 0.86 – Gains also seen elsewhere for single currency
- Euro positive after September PMI results – Germany and Eurozone results mixed
- Pound softened by Johnson’s Article 50 comments – ‘Early 2017’ expected to see trigger
- Belgium industrial figures due shortly – Fresh UK data not due until next week
The Pound has flopped across the board by contrast, having been weakened by remarks from Boris Johnson about when the UK could officially begin to leave the EU.
Euro Exchange Rate News: Fluctuating September PMIs see Overall Rise for EUR
The Euro has found itself in consistently high demand against the Pound and other peers during trading today, although this positive movement has not been entirely facilitated by the major Eurozone data of the morning.
The Markit composite, services and manufacturing PMI flashes for September have been released this morning, though declines have been seen on the month for both composite and services figures for Germany and the Eurozone.
More positively, the manufacturing stats for these two areas have both risen, which is seemingly the reason for the latest single currency appreciation.
Commenting on the news was IHS Markit Senior Economist Rob Dobson, who said;
‘By nation, the main mover was France, where a robust increase in service sector activity offset the ongoing stagnation in manufacturing. This led the French Composite PMI to rise above its German counterpart for the first time in over four years. However, slower growth in the German power house and elsewhere in the currency union suggest the upturn will remain uneven by country heading into the final quarter’.
Pound Sterling in Low Demand as Boris Johnson Points to Article 50 Trigger in Early 2017
Pound Sterling exchange rates today have opened poorly and failed to recover on a day of low-impact UK data.
One of the most major developments of late has come from Foreign Secretary Boris Johnson, who has estimated that the process of triggering Article 50, which would formally begin the UK’s exit from the EU, would occur ‘in the early part’ of 2017.
While not coming directly from the Prime Minister, this news is still significant as it lends further credence to the idea that the start of the coming year will be the beginning of the end for the UK’s ties with the EU, with an uncertain future ahead after that.
Future EUR, GBP Forecast: Minor Euro Shifts Possible on Incoming Belgium Data
With the bulk of the day’s Eurozone announcements now made, the Euro is only likely to be moved further by the announcement of Belgium’s industrial production and business confidence figures for July and September, which are respectively due over the morning and afternoon.
For the industrial results, a rise is forecast on the year compared to an expected monthly dip, while business confidence is forecast to fall from -3.1 to -3.6.
From the UK, the next notable data will come on Tuesday, when the Confederation of British Industry (CBI) distributive trades for September are announced. Predictions have been pessimistic, with the expected outcome being a decline from 9 points to 7.
Current EUR, GBP Exchange Rates
The Euro Pound (EUR GBP) exchange rate was trending in the region of 0.8616 and the Pound Euro (GBP EUR) exchange rate was trending in the region of 1.1608 today.