The Euro has been in low demand against the Pound and US Dollar today, on account of disappointing inflation and unemployment rate figures for the previous months.
- Euro softened by mixed Eurozone data – Inflation and unemployment results upset expectations
- Pound steady after GDP revised up – Improving confidence figure also seen
- US Dollar mixed on Fed comments – Q2 GDP improved for final figure
- Monday to bring EZ, UK and US manufacturing PMIs – Overall Eurozone gains forecast
The Pound and US Dollar have been mixed against peers today, owing respectively to ‘Brexit’ uncertainties and US Fed remarks.
Euro Exchange Rate News: Uncertainty Seen after Disappointing Eurozone Inflation and Unemployment Stats
The Euro has found itself in low demand overall today, having slumped in a majority of its exchange rate pairings due to investor uncertainty.
This has been triggered mainly by the varied nature of the earlier Eurozone data, which saw, among other things, German retail sales for August rise on the year but fall on the month.
Elsewhere, the Eurozone-wide unemployment rate for August remained at 10.1%, against forecasts of a dip to 10%.
For the Eurozone’s inflation rate flashes for September, the annual Core figure reprinted at 0.8% against forecasts of a rise, while more supportively, the base flash advanced above expectations from 0.2% to 0.4%.
Pound Influenced by GDP Data, US Dollar Unsettled by Previous Fed Remarks
The Pound has generally risen against its peers today, although GBP has trended narrowly or made losses in some instances.
UK domestic data has been broadly positive on the whole, with the GfK consumer confidence result rising from -7 to -1 and the Q2 finalised GDP growth rate figures being revised up on the quarter and the year.
For the US Dollar, the day’s trading has been more mixed overall, on account of Thursday’s dovish Federal Reserve remarks.
Offering the ‘Buck’ a more concrete source of support yesterday afternoon was the finalised Q2 GDP growth rate release, which brought forecast-beating results in most fields.
Future EUR, GBP, USD Forecast: Manufacturing PMIs Due on Monday
The Eurozone, UK and US will all be releasing manufacturing PMI data on Monday, although not all of these printings are expected to turn out positively.
In the UK’s case, the September manufacturing PMI is forecast to dip from 53.3 to 52.8, although this will still leave the sector in a state of growth.
The US Markit and ISM manufacturing PMI results for September have different outcomes forecast; the market variant is expected to fall slightly, while the ISM variant has a rise from 49.4 into the growth range at 52 on the cards.
For the Eurozone, manufacturing is expected to rise across almost the entire currency bloc, with the exception of Greece, which is set to see a decline from 50.4 to 49.8. For the overall figure, a rise from 51.7 to 52.6 has been forecast.
Current EUR, GBP, USD Exchange Rates
The Euro Pound (EUR GBP) exchange rate was trending in the region of 0.8609 and the Pound Euro (GBP EUR) exchange rate was trending in the region of 1.1615 today.
The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.1172 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.8954 today.
The Pound US Dollar (GBP USD) exchange rate was trending in the region of 1.2978 and the US Dollar Pound (USD GBP) exchange rate was trending in the region of 0.7706 today.