- Euro unsettled by falling retail sales – Eurozone retail PMI incoming
- Pound stages eventual recovery after May comments – Limited UK data left this week
- US Dollar climbs on ISM result – Further Fed speech due shortly
For the Euro, the day has brought further exchange rate fluctuations, with retail sales declines furthering investor concerns within the single currency bloc. Looking to Thursday, the Euro could be raised back up in exchange rates when the positively-predicted Eurozone retail PMI for September is announced.
The Pound’s week has finally started to improve, with gains being seen in the wake of encouraging comments from Prime Minister Theresa May.
For the US Dollar, the afternoon has brought one piece of extremely positive news – the US ISM non-manufacturing PMI for September, which has roared ahead from 51.4 to 57.1. This has resulted in progressive gains for the ‘Buck’, though not to an all-around rallying level. Incoming is another Fed speech from official Jeffrey Lacker.
(Last updated October 5th, 2016)
The Pound has continued its week of woe, hitting a 5-year low against the Euro and remaining at a 31-year low against the US Dollar. The ‘Buck’ has trended tightly in the wake of an insult-laden clash between the two Vice-Presidential candidates of the US Election.
Euro Exchange Rate News: Reduction in Finalised PMIs Leaves EUR Trending Tightly
The Euro has failed to make any major gains against its regular peers today, but has nonetheless climbed by small amounts against the Pound and US Dollar due to uncertainties in the UK and US.
Against Sterling (EUR GBP), the Euro has risen to 0.88, while against the US Dollar (EUR USD) an advance of 1.12 has been seen.
The latest Eurozone data has been slightly concerning, with the German and overall Eurozone finalised composite and services PMIs for September being revised downwards.
The good news, however, has been that forecasts had been for greater levels of decline.
Pound Sterling Flags while US Dollar Trends Flatly despite Hawkish Evans Comments
Sterling has failed to make much of a recovery during trading today, on account of a continued negative response to the weekend’s news that Article 50 will be triggered in Q1 2017.
The latest UK ecostats have been mildly positive, with the services PMI for September falling from 52.9 to 52.6 instead of the forecast 52.5, although little positive response has been seen to this yet.
The US Dollar has been an unstable option for investment today, having either trended in a tight range or declined against most of its regular peers.
The latest economic news out of the US came from Fed official Charles Evans, who declared that;
‘I would not be surprised, and if data continue to roll in as they have, I would be fine with increasing the funds rate once by the end of this year’.
Future EUR GBP USD Forecast: EZ Retail Sales and Major US Jobs and Trade Data due Today
The next notable Eurozone ecostats of the day will be out shortly, when the August retail sales results arrive. As it stands, both the monthly and annual printings are expected to drop, with the former field predicted to fall from 1.1% to -0.1%.
Closing off Eurozone contributions in the early afternoon will be a speech from European Central Bank (ECB) official Ignazio Angeloni, who is to give remarks on ‘The European Banking Union: Open Issues’.
From the US, the afternoon’s ecostats will consist of September’s Adp employment change, the August balance of trade and the ISM non-manufacturing PMI for September.
Employment is forecast to rise from 168k to 175.5k, while the current trade deficit is predicted to rise from -39.47bn to -40bn.
The PMI result has been forecast to rise from 51.4 to 56, while also coming throughout the day will be Fed speeches from officials Neel Kashkari and Jeffrey Lacker.
Current EUR, GBP, USD Exchange Rates
The Euro Pound (EUR GBP) exchange rate was trending in the region of 0.8818 and the Pound Euro (GBP EUR) exchange rate was trending in the region of 1.1342 today.
The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.1222 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.8913 today.
The Pound US Dollar (GBP USD) exchange rate was trending in the region of 1.2726 and the US Dollar Pound (USD GBP) exchange rate was trending in the region of 0.7857 today.