- UK currency drops as confidence moves into negative range.
- UK Referendum debate offers little impact as week closes
- US Dollar remains soft after GDP disaster
- Imminent Eurozone stats could shift currency trinity dramatically
UK Ecostats Fail to Inspire Confidence in National Economy
The Pound (GBP) has been an uncertain prospect overall today, with exchange rate movements either consisting of narrow shifts or sizable declines. This may be as a consequence of the earlier Gfk consumer confidence score for April, which fell from 0 to -3.
The Euro (EUR) has been fairly positive overall on supportive GDP stats today, although the near-future is set to bring high-impact Eurozone-wide unemployment, GDP and inflation rate data that could unsettle this current positivity.
The US Dollar (USD) has crumbled against most peers due to the yesterday afternoon’s annualised Q1 GDP falling from 1.4% to 0.4%.
The Pound (GBP) has been an uncertain prospect today, owing to the outcome of the day’s most impactful UK domestic data.
The Euro (EUR) has fared well overall, with gains coming against a number of peers after the day’s early ecostats were announced.
The US Dollar (USD) has been as mixed as the Pound so far, trending mostly around opening levels verses its peers.
UK Economic News: Divisive Outcome for GDP Data Leaves GBP in the Wind
The Pound (GBP) has been extremely mixed in its movement so far today, having declined against the Euro (GBP/EUR) and trended in a tight range against the US Dollar (GBP/USD) but risen by 1.6% against the Australian Dollar (GBP/AUD) and by 0.6% against the New Zealand Dollar (GBP/NZD).
The main news for the UK has been the announcement of the GDP growth rate results for the first quarter; while the annual result has reprinted at 2.1%, the quarterly outcome has slipped from 0.6% to 0.4%.
Euro (EUR) Rallies while US Dollar (USD) Fluctuates Wildly
The single currency (EUR) has been in a position of strength against its peers today, with gains including a slight advance on the Pound (EUR/GBP), 0.3% against the US Dollar (EUR/USD) and 2% against the Australian Dollar (EUR/AUD).
One of the most notable sources of optimism for Euro investors today has been the German Gfk consumer confidence survey for May, which has risen from 9.4 to 9.7 against predictions of stagnation. In the future, however, German contributions may not be so satisfactory.
The US Dollar (USD) has been far more mixed so far, with gains of 0.3% against the New Zealand Dollar (USD/NZD) and 1.6% against the Australian Dollar (USD/AUD) being countered by losses of -0.2% against the Euro (EUR) and a slight dip against the Pound Sterling (USD/GBP).
Yesterday brought a mix of US economic announcements; both the services and composite PMIs for April rose, though consumer confidence in the same month fell from 96.2 to 94.2.
UK, Eurozone and US Forecast: UK CBI Stats, ECB Conference and US Homes Data Incoming
The near-future will bring a range of ecostats affecting the three currencies, although as with yesterday, the US is expected to take the lion’s share of economic announcements.
Starting with the UK, the Pound (GBP) may be shifted in the near-future by the announcement of the Confederation of British Industry (CBI) business optimism and distributive trades results for the second quarter and April, respectively. For the former field, a decline has been forecast.
Following on from this during the day will be the Eurozone’s contribution, which will be the European Central Bank’s (ECB) macroprudential policy and research conference.
The US releases to watch out for today include mortgage applications for April, the advance goods trade balance and pending home sales on the year for March.
Generally speaking, forecasts are fairly dim for the US result outcomes, as predictions show only a slight reduction of the current trade deficit and a substantial slip in home sales compared to the previous printing.
Current GBP, EUR, USD Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2886 while the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7761 today.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.4589 while the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6856 today.
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1324 while the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.8836 today.