The Euro to Pound Sterling (EUR/GBP) and Euro to US Dollar (EUR/USD) exchange rates have respectively risen and fallen at the start of a relatively quiet day for the common currency.
EUR/GBP, EUR/USD Exchange Rate News: The Impact of Negative Praet Speech Persists Today
The Euro (EUR) has opened the week on an unimpressive note, having declined by -0.2% against the Australian Dollar (EUR/AUD), -0.4% against the Japanese Yen (EUR/JPY) and -0.2% against the US Dollar (EUR/USD). Among the gains recorded have been 0.3% against the Canadian Dollar (EUR/CAD) and the South African Rand (EUR/ZAR) and 0.4% against Pound Sterling (EUR/GBP). This slip against the ‘Buck’ (USD) represents a significant deterioration compared to last week.
The most recent detrimental factor for the Euro has been Friday’s speech by European Central Bank (ECB) Executive Board Member Peter Praet, who warned that despite ECB President Mario Draghi’s statement that the Eurobank’s interest rate was unlikely to shift for the foreseeable future, further cuts could be in store if economic growth fails to materialise.
Additionally, Praet suggested that ‘helicopter money’ could be implemented, which only further destabilised the Euro’s position.
Pound Sterling (GBP) Slides While US Dollar (USD) Steadies on Comments from Fed Official Jeffrey Lacker
Pound Sterling (GBP) has been a poor prospect so far today, having fallen against almost all of its competitors so far. These losses have include -0.3% against the Euro (GBP/EUR), -0. 6% against the US Dollar (GBP/USD) and -0.9% against the Israeli New Shekel (GBP/ILS).
Today’s Rightmove house prices have fallen on the month and risen on the year in March, but the most damaging development for the Pound has been the resignation of Conservative MP Iain Duncan Smith as Secretary of State for Work and Pensions over the recently revealed Budget plans to cut disability benefits in an effort to meet a budget surplus in 2020.
The US Dollar (USD) has performed the best out of the three currencies today, having made gains of 0.3% against the Euro (USD/EUR) and 0.6% against Pound Sterling (USD/GBP) and the South African Rand (USD/ZAR).
The most recent support for the ‘Buck’ has come from Fed official Jeffrey Lacker, who has shown that he thinks a 2% inflation rate is definitely achievable under present conditions.
EUR, GBP, USD Exchange Rate Forecast: CBI Stats, Home Sales and Eurozone Confidence Data Incoming
Today will bring three pieces of notable UK, US and Eurozone data, with the UK having the first say in any exchange rate movement.
This will come from the Confederation of British Industry (CBI) trends for total orders and selling prices in March, both of which previously printed negatively.
Following on from this will be the US existing home sales results for February, which are expected to drop to -2.9% from 0.4%.
The Eurozone contribution will be the consumer confidence flash for March, which was predicted to shift from -9.7 to -9 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 0.7817, the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2794, the Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1251, the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.8890, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.4394 and the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6948 today.