- UK currency fares well as nation remains under uncertain leadership – Turmoil seen in both major parties
- Euro dives on waning confidence – Domestic data went against this movement
- US Dollar remains mixed after ‘Brexit’ – Fed comments unnerve investors
- German inflation stats incoming – US spending results also on the way
The Pound has been a relatively stable option against peers today, though this state remains a tenuous one.
The Euro has flopped overall, likely on account of widespread concerns about the future of the Eurozone.
The US Dollar has been a mixed option so far, owing to recent dovishness from a Fed policymaker.
UK Economic News: Cameron Bids Farewell to EU as Pound remains Steady
The latest news to come out of the UK has concerned current Prime Minister David Cameron, who has effectively attended his last EU summit meeting recently, barring any emergencies that necessitate his attendance.
The PM spoke of other EU leaders being regretful of the UK’s decision, although looking ahead, German Chancellor Angela Merkel said:
‘We cannot say clearly what this relationship will look like, but we have to say what conclusions we draw as the 27. We did not discuss the possibility that the UK will not invoke article 50, and I consider this an impossibility’.
A gain of 0.3% has been seen in the Pound Euro (GBP/EUR) exchange rate, , while a 0.2% appreciation against the US Dollar (GBP/USD) has also been registered.
In other news, the two leading political parties remain under contested leadership, though over the next 24 hours, candidates are expected to officially put themselves in the running for the Labour and Conservative parties.
Euro Slides while US Dollar Appeal is more Divided
The single currency has declined overall against its peers today, having slipped by a small amount against the US Dollar (EUR/USD) and by -0.3% against the Pound (EUR/GBP).
For the Eurozone, the day so far has brought unsupportive Portuguese confidence results for June, with many more contributions to follow.
The US Dollar’s appeal has been on a slight recovery recently, with the ‘Buck’ recording a minor gain against the Euro (USD/EUR) alongside a loss of -0.3% against the Pound.
From the Federal Reserve’s Jerome Powell has come a dovish commentary, where the policymaker warned that even before the mass instability caused by ‘Brexit’, market conditions were challenging and chances of rate hikes were slim.
Future GBP, EUR, USD Forecast: German Inflation Rate Data due, could the Euro Rise on the Result?
The next data to watch out for will come from the Eurozone, when Germany releases its inflation rate printings for June this afternoon. Present expectations are for a dip on the month but a rise on the year.
From the US, the afternoon will bring personal income and spending stats for May, which are expected to drop in both fields.
Current GBP, EUR, USD Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2113 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.8257 today.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.3410 and the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.7457 today.
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1072 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9033 today.