Euro exchange rate movements have been generally poor during Friday’s trading session, with recent data showing rising German confidence and falling Spanish sales. Upcoming events will include a European Central Bank (ECB) official speech on Saturday.
- Euro exchange rates low after unsupportive Eurozone results – Rising German confidence failed to inspire optimism
- Pound Sterling climbs as Q2 GDP is revised upwards – Rising figures match with forecasts
- US Dollar softens against peers ahead of Fed Chair Speech – Yellen’s comments to cause major movement
- Speech from BoE’s Shafik due today – Hawkish Yellen speech could send USD soaring
Pound exchange rates have staged another recovery on the back of pre-Referendum GDP news, while the US Dollar has predictably been destabilised by an upcoming, high-importance speech from Federal Reserve Chair Janet Yellen.
Eurozone Economic News: Euro (EUR) Trades in a Narrow Range on Lacklustre Eurozone Data
The Euro has been in a state of low demand during Friday’s European trading session, having been ultimately weakened by the limited quantity of Eurozone ecostats on display.
Data actually opened on a positive note, with Germany’s GfK consumer confidence estimate for September coming in with a rise from 10 to 10.2, instead of the forecast drop to 9.9.
GfK remarks released with the news stated that the climate for consumers had been;
‘proven to be completely resistant to the recent rise in general uncertainty caused by the ‘Brexit’ decision and the noticeably increased fear of terror following the attacks in Bavaria’.
Other Eurozone news has been less supportive for the single currency, with France’s GDP second estimate falling on the quarter for Q2 and Spanish retail sales dropping on both the month and the year in July.
Pound (GBP) Aided by Rising GDP while US Dollar (USD) Weakens on Uncertainty over Fed Speech
The Pound has traded positively against most of its rivals over Friday’s opening trading, with moderate gains coming against many of the UK currency’s usual peers.
The main UK news of the day has concerned the second estimate of the Q2 GDP growth rate, which has risen in line with forecasts on the quarter and year.
Other UK data has been more mixed, as while Q2 business investment has risen on the quarter, a reprint at -0.8% has been seen on the year.
The US Dollar has been on far less stable ground as trading has opened, with this afternoon’s speech from Fed Chair Janet Yellen at the Jackson Hole Symposium attracting much of the attention of economists and investors alike.
Yellen’s speech holds a far greater significance this year compared to 2015, as in the aftermath of the EU Referendum result, global markets are operating a lot more cautiously on fears for the future.
Future EUR GBP USD Forecast: Jackson Hole Speech Dominating Investor Focus, BoE Official Remarks Expected
For both the Euro and the US Dollar today, Yellen’s speech is expected to be highly impactful, as hawkish remarks could boost the US Dollar’s appeal considerably, which would conversely see the Euro deteriorate overall.
Ahead of the much-awaited speech, the US’s GDP growth rate second estimate for Q2 is due; this has been forecast to rise supportively on the quarter.
For the UK, the last relevant piece of news will also come from Jackson Hole, where Bank of England (BoE) official Nemat Shafik is due to speak over the afternoon. Given the greater issue of US economic policy, however, Shafik may remark on the future of the US, rather than the UK.
Current EUR, GBP, USD Exchange Rates
The Euro Pound (EUR GBP) exchange rate was trending in the region of 0.8535 and the Pound Euro (GBP EUR) exchange rate was trending in the region of 1.1717 today.
The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.1290 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.8860 today.
The Pound US Dollar (GBP USD) exchange rate was trending in the region of 1.3230 and the US Dollar Pound (USD GBP) exchange rate was trending in the region of 0.7560 today.