- EUR GBP rises to 0.90 – 1.10 rate remains for EUR USD
- Pound battered by ‘Brexit’ debate – Government called to account for patchy EU exit plans
- Fed minutes out this evening – Pound recovery before Friday in doubt
The Euro has remained in a poor position against the stable US Dollar today, though against the Pound, an advance has once again been seen.
This has mainly been due to the Pound deteriorating, as elsewhere, the Euro has remained a mixed option against peers.
The latest source of damage for the Pound has been a debate in the House of Commons over how the Government will conduct ‘Brexit’ negotiations, which has brought a considerable amount of criticism down on the ruling Government from all parties, due to the latest Pound crashes being attributed to a lack of clarity on how ‘Brexit’ will work in practice.
‘Brexit’ Secretary David Davis came under particular scrutiny, with contradictory statements about whether MPs would be regularly informed about negotiations only adding to the impression that confusion reigned among the so-called ‘Three Brexiteers’.
(Last updated October 12th, 2016)
The Pound has surprisingly managed to advance during trading today, while the US Dollar has had a more consistent advance on investor optimism.
Euro Exchange Rate News: Mersch Comments Raise Concerns for EUR Investors
The Euro has been in low demand today, having fallen against all of its peers barring the weaker Polish Zloty (EUR PLN) and South African Rand (EUR ZAR).
Tight trending has been seen against the Pound, while a -0.3% drop has been recorded against the US Dollar.
The latest Eurozone data has been positive, with the August annual and monthly industrial production results rising from 0.5% to 1.8% and from -0.7% to 1.6% respectively.
However, comments made yesterday by European Central Bank (ECB) official Yves Mersch have left the Euro in a weaker position due to investor unrest.
Specifically, Mersch stated that;
‘ECB staff analysis indicates that in the absence of our policies, the Euro area economy would be notably weaker’.
While this statement indicated that the ECB’s policy measure are effective, it also raised concerns that the central bank is unlikely to stop making policy adjustments or implementing easing for the foreseeable future.
Pound Up after May’s Vote Comments, US Dollar Climbs on Diving Trump Support
It remains to be seen how long this ‘rally’ will last, given that Bank of England (BoE) official Sir Jon Cunliffe has recently been warning of the dangers of a bad ‘Brexit’ outcome.
After a shaky start the US Dollar has since picked up momentum, rising against many of its regular peers due to continued assertions that Donald Trump’s presidential ambitions may have been sunk.
In addition to having to contend with the fallout of the weekend’s taped comments, Trump has also committed more recent damage by mistakenly identifying November 28th as the election voting date, instead of the actual date of November 8th.
Future EUR GBP USD Forecast: USD Rally Possible on Incoming Fed Minutes
The US is set to bring high-impact data in the near-term, compared to medium importance contributions from the Eurozone and UK data on national house prices.
The US release will come this evening, when the Fed releases its minutes for the September interest rate decision.
If the minutes make it seem as though a Fed interest rate is practically guaranteed in December, the US Dollar could rally as markets price in odds higher than the current 64% that policy will be tighter by the end of the year.
Further Eurozone input will come this evening, when ECB officials Yves Mersch and Benoit Coeure give remarks at Harvard University and in Brussels, respectively.
The UK’s next contribution will consist of tomorrow’s early RICS house price balance comes in. A slight rise from 12% to 14% is expected.
Current Interbank Exchange Rates
The Euro Pound (EUR GBP) exchange rate was trending in the region of 0.89 and the Pound Euro (GBP EUR) exchange rate was trending in the region of 1.11 today.
The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.10 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.90 today.
The Pound US Dollar (GBP USD) exchange rate was trending in the region of 1.22 and the US Dollar Pound (USD GBP) exchange rate was trending in the region of 0.81 today.