The Euro (EUR) has held onto its earlier gain of 1% against the Pound Sterling (EUR/GBP) today, having been put into this position by a far worse-than-expected domestic data release from the US.
Decline in US Orders Cements Earlier Euro (EUR) Victory against Rivals
The US Dollar (USD) has come through again for the Euro (EUR) today, having downtrended considerably on the release of the afternoon’s Durable Goods Orders, which have fallen by -5% instead of the forecast -4.5%.
The Euro (EUR) has risen by 1% against the Pound Sterling (EUR/GBP) today, something brought about by the Bank of England (BoE) making an exceptionally dovish decision today regarding the UK interest rate.
McCafferty Gives Up on UK Interest Rate Hike, Pound Sterling (GBP) Crashes Across the Board
Pound Sterling (GBP) has dived to dramatic lows today, mainly on account of the BoE Monetary Policy Committee (MPC) unanimously voting to freeze the UK interest rate.
The Euro (EUR) has made a gain of 0.2% against the Pound Sterling (EUR/GBP) today, on a day when the Pound (GBP) has the slim chance of rallying against its competitors.
‘Super Thursday’ Today Means Heavy BoE Focus for Investors
Euro (EUR) movement today would normally be negative, given the poor showing from the January Eurozone Retail PMI results, but it is thought that a particularly determined delivery from European Central Bank (ECB) President Mario Draghi has allowed the Euro to rise against the odds.
At noon today, the Bank of England (BoE) Interest Rate Decision will be announced, along with the bank’s inflation report. No change is expected for the rate itself.
The Euro (EUR) has made a loss of -0.5% against the Pound Sterling (EUR/GBP) today, something potentially brought about by the ongoing situation in the House of Commons.
‘Missed Opportunity’ From Corbyn Made up for by Home Side Attacks
Although Jeremy Corbyn questioned the PM on cancer care in the UK today rather than the UK Referendum draft, the PM hasn’t actually managed to avoid ‘friendly fire’, having been set upon by Tory party members Sir Bill Cash, Boris Johnson and Liam Fox, among others.
Despite this, Sterling (GBP) has stayed strong, implying that the PM is weathering the opposition well.
The Euro to Pound Sterling (EUR/GBP) exchange rate has declined by a small amount this morning, while elsewhere the single currency has either declined or trended in a tight range against the competition. Pound Sterling (GBP) has been supported by better-than-expected domestic data.
EUR/GBP Exchange Rate News: Worse-than-Expected Eurozone PMIs Trigger Euro’s Downfall Today
The Euro (EUR) has largely fallen against its major peers today, having recorded losses of -0.3% against Pound Sterling (EUR/GBP) and the Japanese Yen (EUR/JPY), -0.8% against the South African Rand (EUR/ZAR) and -1.2% against the New Zealand Dollar (EUR/NZD).
The initiator of the current downwards Euro movement is thought to be the morning’s Eurozone Composite and Services PMIs for January; in virtually all fields except the overall Eurozone Composite, figures fell or remained static on previous printings.
Pound Sterling (GBP) Exchange Rate Steady after Supportive UK PMI Reports
The Pound’s (GBP) movement today has largely been positive, with the initiating factor being this morning’s better-than-expected outcomes for the January Services and Composite PMIs. These have respectively improved from 55.5 to 55.6 and from 55.3 to 56.1 against joint forecasts of declines.
At present, however, it remains to be seen whether Sterling will be able to hold onto its gains past midday. This is due to the coming of Prime Minister’s Questions, where David Cameron is expected to be grilled by both opposition MPs and his own party’s members. The topic will be the recently published draft UK Referendum conditions, which many critics have derided as a ‘pint size’ set of agreements.
Sterling’s gains today have included 0.5% against the Euro (GBP/EUR) and 0.8% against the Chinese Yuan (GBP/CNY).
EUR/GBP Exchange Rate Forecast: Clash with Cameron Impending, BoE Rate Decision due Tomorrow
The main event likely to affect the EUR/GBP exchange rate will be the imminent arrival of PMQs, which are scheduled to begin at midday. Although Cameron is sure to give a stalwart defence of the draft proposal, the weight of his detractors’ arguments may ultimately unsettle investors in the UK economy to the extent that it slips down against the competition.
Further ahead will be tomorrow’s high-impact Bank of England (BoE) Interest Rate Decision and Inflation Report; the former is set to remain unchanged while current predictions have the usual 2% coming up for the inflation figure.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7549 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3248 today.