The Euro (EUR) has posted 0.2% against the Pound Sterling (EUR/GBP) today but has remained in a negative range against the US Dollar (EUR/USD).
Potential for US Dollar (USD) Resurgence Today if NFP Figure Exceeds Forecasts
The biggest event to have an effect on the trinity in the near future will be this afternoon’s US Change in Non-Farm Payrolls result for January, which at the time of writing was forecast to show a 190k rise. Although unlikely, a greater figure exceeding 200k would likely go a long way to reassuring investors in the ‘Buck’ (USD) of the security of the US economy.
The Euro (EUR) has risen by 0.3% against the Pound Sterling (EUR/GBP) but trended in a narrow range against the US Dollar (EUR/USD) today, something caused by yesterday’s UK results and this morning’s contributions from the Eurozone.
German Factory Orders Lower Overall Euro (EUR) Appeal Today
While the Euro (EUR) has risen against the Pound (GBP) due to lingering pessimism from yesterday’s Bank of England (BoE) Interest Rate Decision, it has fallen elsewhere on account of Germany posting worse-than-expected December factory order results, both on the month and the year.
The Euro (EUR) has made gains of 1% against the Pound Sterling (EUR/GBP) and the US Dollar (EUR/USD) today, something mainly caused by the respective deterioration of the latter two currency’s economies.
US Durable Goods Orders Decline Secures Euro (EUR) into Close of Trading Session
While the earlier Bank of England (BoE) Interest Rate Decision has been the author of the Pound’s (GBP) demise today, the US Dollar (USD) has flopped due to the Durable Goods Orders declining by -5% instead of the lesser expected -4.5%.
Pound Sterling (GBP) has fallen by -0.7% against the Euro (GBP/EUR) today and made a minor gain of 0.2% against the US Dollar (GBP/USD). The downtrend seen in most other pairings has been caused by the recent Bank of England (BoE) news.
UK Interest Rate Ice Age Continues Today after Ian McCafferty Admits Defeat
While most economists had been predicting a repeat of the usual 8-1 voter distribution, Monetary Policy Committee (MPC) member Ian McCafferty finally conceded to popular movement and voted against the interest rate hike, something that sent the Pound spiralling down against virtually all of its rivals.
The Euro to Pound Sterling (EUR/GBP) and Euro to US Dollar (EUR/USD) exchange rates have both risen today, while elsewhere the single currency (EUR) has made relatively positive progress against the competition.
EUR/GBP, EUR/USD Exchange Rate News: Dynamic Draghi Speech Raises the Euro’s Appeal Today
The Euro (EUR) has not risen against all of its rivals today, although supportive economic events have allowed advances of 0.2% against the Pound Sterling (EUR/GBP), 0.4% against the Swiss Franc (EUR/CHF) and 0.6% against the US Dollar (EUR/USD).
The most notable development for the Eurozone so far today has been a speech from European Central Bank (ECB) President Mario Draghi, who all but assured investors that economic stimulus measures will be put into place in March due to the negative effects of the central bank’s previous inaction. The key supporter of this conclusion was the statement: ‘What matters is that central banks act within their mandates to fulfil their mandates. In the Euro area, that might create different challenges…but those challenges can be mitigated. They do not justify inaction’.
Pound Sterling (GBP) Static Today while US Dollar (USD) Slumps on Past Data
Neither the Pound (GBP) nor the US Dollar (USD) have been excelling themselves today, although both have the potential to be moved in the near future by domestic economic publications.
The Pound’s softening has likely been caused by investor anxiety ahead of the main ‘Super Thursday’ events, which will be the Bank of England (BoE) Interest Rate Decision and Inflation Report.
The Pound has fallen by -0.2% against the Euro (GBP/EUR) today but posted a gain of 0.5% against the US Dollar (GBP/USD).
The US Dollar, meanwhile, has tanked on account of yesterday’s disappointing ISM non-manufacturing composite, which fell from 55.8 to 53.2.
US Dollar losses include -0.5% against the Pound Sterling (USD/GBP), -0.6% against the Euro (USD/EUR) and -1% against the New Zealand Dollar (USD/NZD).
EUR, GBP, USD Exchange Rate Forecast: BoE Input due Later along with US Claims Data
The coming hours will first see the announcement of the BoE’s interest rate choice, which is not expected to change from the current 0.50%. However, even a single policymaker joining established hawk Ian McCafferty in voting for a rate hike may generate a large amount of support for Sterling (GBP) in the immediate aftermath.
On the US side, the BoE announcement will be followed by the Initial Jobless and Continuing Claims statistics for late January this afternoon, which were forecast to show no signs of reduction at the time of writing.
Current EUR, GBP, USD Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7629, the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3118, the Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1176, the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.8948, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.4661 and the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6824 today.