- Pound remains in demand despite Brexit warning – Mutual damage predicted if EU looks for ‘Hard Brexit’
- Euro rallies on German unemployment stats – More employed than expected
- US Dollar jumps on OPEC news – Historic cut boosts global oil prices
The Pound has jumped against the Euro today but been tight against the US Dollar. The latest influence on the Pound has been fears that despite Bank of England (BoE) Governor Mark Carney warning of UK-EU damage after ‘Hard Brexit’, the Union may still aim for this punishing outcome.
The Euro has rallied over the afternoon, thanks to Germany posting a larger drop in the number of unemployed persons in November than initially expected.
The US Dollar has received some last minute support against its peers, owing to the oil producers OPEC finally agreeing to cut production due to mass oversupply. Not involved in the discussions, the US has nonetheless benefitted, with the now soaring price of crude oil meaning future gains for the nation’s producers and exporters.
(Last updated November 30th, 2016)
The Pound has remained on top against the Euro and US Dollar today, rising to 1.17 and 1.24 respectively. While no UK data has been released since the morning, the earlier rally has stayed on throughout trading.
In the Eurozone, disappointment has come from Germany’s November inflation rate stats, which have fallen on the month during preliminary researches.
(Last updated November 29th, 2016)
Euro interest has been mixed during trading, while the appeal of the US Dollar has climbed owing to manufacturing figures.
Pound Sterling Exchange Rate News: GBP Rallies on Jump in UK Credit Stats
The Pound has been strong against the Euro and US Dollar today, rising by over 0.3% in each pairing.
Yesterday was a poor one for Sterling trading, mainly owing to fresh fears that Brexit proceedings would be greatly complicated by the UK’s attachment to the EU single market.
Lately, the Pound has risen in demand across the board, mainly on account of renewed optimisms about the Government’s Brexit talks as a whole.
Specifically, a document has been photographed that appears to show Government scepticism about retaining single market access, but does at least indicate that the ‘Department for Brexit’ is discussing the key matter at hand.
The Government has been quick to distance itself from the notes, which have included the words;
‘We think it’s unlikely we’ll be offered single market’.
Euro Softened on Confidence Scores, US Dollar Climbs after Forecast-beating Manufacturing Stats
The Euro Pound exchange rate has fallen by -0.6% today, while the Euro US Dollar pairing dipped by around -0.2%.
The big Eurozone news of the day has been currency bloc-wide November confidence results, which have printed worse than expected.
Consumer confidence on the month remained negative with a shift from -8 to -6.1, while business confidence dropped from 0.56 to 0.42. Economic sentiment rose fractionally, while for the services sentiment figure, a reprint at 12.1 was recorded.
USD GBP has fallen by -0.5%, although a weaker Euro has allowed USD EUR exchange rates to climb 0.2%. The US Dollar is being supported against the Euro due to Monday afternoon’s Dallas Fed manufacturing index for November rising above forecasts.
An increase from -1.5 to 1.4 was expected, therefore the US Dollar was supported even further when a 10.2 result was recorded.
Future GBP EUR USD Forecast: German Inflation Data and Fed Speeches in Focus This Afternoon
The next economic announcements to watch out for will come from the US, where Fed Vice Chair Stanley Fischer is due to give a speech in the early afternoon. Fed addresses will continue throughout the day, coming from officials William Dudley and Jerome Powell.
Also expected from the US in the afternoon will be the Q3 second estimate for the GDP growth rate, which is set to show a significant rise from 1.4% to 2.9%.
From the Eurozone, the day’s last significant contribution will be Germany’s November preliminary inflation rate, which is expected to show a slight rise on the year but a reprint at 0.2% on the month.
Closing off the day’s UK input will be a speech from Bank of England (BoE) official David Bailey, ahead of Wednesday’s early GfK consumer confidence result. Movement towards a positive range for the confidence score is expected.
Current Interbank Exchange Rates
The Pound Euro (GBP EUR) exchange rate was trending in the region of 1.17 and the Euro Pound (EUR GBP) exchange rate was trending in the region of 0.84 today.
The Pound US Dollar (GBP USD) exchange rate was trending in the region of 1.24 and the US Dollar Pound (USD GBP) exchange rate was trending in the region of 0.80 today.
The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.06 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.94 today.