- GBP EUR trading at 1.16 – GBP USD rate at 1.24
- Euro softened by ECB account – Fed Chair Yellen further raises odds of December rate hike
- ECB’s Draghi to speak Friday – Further USD-shifting Fed speeches incoming
The Pound has held fast against both the Euro and US Dollar today, having been aided by the continuing investor optimism after the earlier retail sales results.
The Euro’s movement has mainly been influenced by the European Central Bank accounts of its latest policy meeting, which have shown a desire to wait until December before acting on policy measures. This has added pressure onto November’s Eurozone news to be positive, lest the ECB elect to implement easing as a consequence.
The US Dollar has been in consistently high demand, on account of comments from Fed Chair Janet Yellen. Giving testimony, Yellen has made it clear that she will continue her term under Trump until 2018, and has additionally challenged plans to dismantle key Obama-administration legislature. Yellen has also added further fuel to speculation that December will bring another interest rate hike, which has bolstered the US Dollar.
Looking to Friday, ECB President Mario Draghi is due to speak in the morning, while further Fed commentary is also anticipated throughout the day.
(Last updated November 17th, 2016)
The Euro has been an unstable option for trading while the US Dollar has slipped as speculators realise their gains over Wednesday.
Pound Sterling Exchange Rate News: GBP EUR, GBP USD Rates Climb after Retail Sales Bonanza
The Pound Euro exchange rate (GBP EUR) has risen by 0.2% today, while a greater advance of 0.3% has been recorded against the US Dollar (GBP USD). This performance has come in the wake of Wednesday’s mixed unemployment rate figures.
Two pieces of supportive news have enabled this GBP appreciation today, one of which was higher-than-expected figures for October’s UK retail sales stats.
On the month and the year sales with and without fuel exceeded predictions, which raised hopes that the latest Brexit developments were not having a detrimental impact on the UK economy.
Additionally, plans to limit the powers of the House of Lords have apparently been dropped, which has raised the chances that peers will oppose Article 50 and stall the UK’s exit from the EU.
Euro Unsettled by Mixed Inflation Data, US Dollar Slides after Profit-Taking
The Euro has found itself on unstable ground after the release of key Eurozone ecostats today, trending narrowly against both the Pound and US Dollar.
Eurozone news has focused on September’s construction output, as well as inflation in October.
While the output figure doubled on the year to 1.8%, inflation proved more unsettling by falling on the month and rising on the year.
Trading for the US Dollar has been unfavourable so far, with declines being seen against the Euro of -0.2% and against the Pound of -0.3%.
The US Dollar previously rallied over Wednesday on the hopes that high odds of a December interest rate hike would pay off, though since then the US currency has gradually slipped due to profit-taking.
Future GBP EUR USD Forecast: Euro, US Dollar Shifts Possible on ECB, Fed Speeches
Central bank remarks are set to generate the last notable Euro and US Dollar movements of the week. In the Pound’s case, a lack of domestic data is set to leave Sterling rudderless, barring any surprise Article 50 or Brexit-based announcements.
For the Euro, input will likely come from this afternoon’s European Central Bank (ECB) monetary policy meeting accounts, as well as speeches from official Peter Praet tonight and ECB President Mario Draghi on Friday morning.
As well as having a plethora of Fed speeches on the way, the US Dollar could also be moved this afternoon by the US’s October inflation rate results, which are predicted to reprint positively.
Rolling through the range of Fed contributions, speeches are expected from William Dudley, Lael Brainard and Charles Evans today, along with testimony from Fed Chair Janet Yellen.
On Friday, James Bullard, Esther George, Jerome Powell and Robert Kaplan have remarks scheduled, so any more bullish commentary could cement a rally for the US Dollar over today and tomorrow.
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.
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 1.07 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.93 today.