- Pound slumps overall on continued US economic fears – Lack of alternatives leaves GBP at performance peak
- Euro crumbles ahead after mixed production results – Forecasting-beating GDP from Greece
- UK inflation rate and inflation hearing due tomorrow – Euro losses possible on German GDP figures
The Pound has been in low demand against most peers today, though against the Euro a slight gain has been recorded. The latest GBP gains have mainly been due to uncertainty elsewhere, which has driven up demand for a comparatively safe Sterling.
The Euro has failed to stage a recovery today, remaining in negative ranges on account of the monthly industrial production result for September falling from 1.8% to -0.8%. In better Eurozone news, Greek has posted rising preliminary Q3 GDP growth rate results, against forecasts of continued negative figures.
Looking ahead, the Euro may be damaged further on Tuesday morning, given that Germany’s Q3 GDP growth rate flashes are forecast to dip on both the quarter and the year.
(Last updated November 14th, 2016)
The Euro has been in a similarly bad way against its regular peers, owing to fears that the future United States may prove unaccommodating to the single currency union.
Pound Sterling Exchange Rate News: PM’s India Talks Questioned, UK-US Trade Deal Mused
The Pound has only managed to make fractional gains against the Euro today, amounting to 1.16. In other pairings, Sterling has declined on the whole, sliding by over -0.5% against most peers.
The latest UK news has come from India, where Prime Minister Theresa May has been meeting with top Indian officials in a bid to strengthen ties between the two countries.
Although the PM has reportedly secured trade arrangements worth £1bn, the question has been raised about how long the UK will be considered an important partner to India.
This is partly because the UK will eventually be separated from the EU, but also because previous Home Office policy has proven restrictive to Indians looking to move to the UK to work or invest.
In other Pound-weakening news, concerns have emerged that despite plans to set up strong UK-US trade links under President Trump, the idea of UK free trade may fly in the face of a potentially protectionist US leader.
Euro Slips in Trading Today as Fears of US Isolation Grow
The Euro to Pound exchange rate has traded at 0.86 today, on the very border of a slip to 0.85.
The latest domestic data of note has included a rise in Ireland’s October construction PMI, as well as a significant increase for Estonia’s Q3 unemployment rate from 6.5% to 7.5%.
The US has once again factored into Eurozone affairs today, with the declaration coming yesterday from EU Foreign Policy High Representative Federica Mogherini that;
‘We are looking forward to a very strong partnership with the next [US] administration. We have decided together to engage with the incoming administration even from this very first week of transition’.
Working against this positive outlook have been Trump’s previous comments that he might not support NATO allies unless they ‘pay up’, as well as his outspoken stance against ‘unfavourable’ trade deals.
Future GBP EUR Forecast: Euro Losses may Worsen on Incoming Industrial Data
The next shift in the GBP EUR pairing could prove advantageous to the Pound, given that a slump has been forecast for the September Eurozone industrial production results. On the month, a drop from 1.6% to -0.3% has been forecast, while on the year a decline from 1.8% to 0.7% is anticipated.
For the UK, the first news of the week will arrive on Tuesday morning, when the October annual inflation rate results come in. A slight rise is expected annually, though the monthly figure has a reprint at 0.2% forecast.
Also due on Tuesday morning is a Treasury Committee hearing on inflation reports.
Current Interbank Exchange Rates
The Pound Euro (GBP EUR) exchange rate was trending in the region of 1.16 and the Euro Pound (EUR GBP) exchange rate was trending in the region of 0.86 today.