Euro Exchange Rate News

Pound Slides ahead of BoE Decision, Euro Mixed, US Dollar Advances

The Pound (GBP) has been giving a poor performance this morning, having dropped off against a majority of its major peers.

The Euro (EUR) has been making more positive movement so far, although a number of losses have also been observed.

The US Dollar (USD) has been the strongest of the three currencies, having been boosted by a recent supportive data release from the Federal Reserve.

UK Economic News: Official Start to UK Referendum Campaigns Unsettles Investors

The Pound (GBP) has been a poor prospect for investors today, dropping as a result against the majority of its peers.

Among the Pound’s losses have been -0.2% against the Euro (GBP/EUR), -0.5% against the US Dollar (GBP/USD) and -0.7% against the Japanese Yen (GBP/JPY). Among the gains recorded have been 0.4% against the South African Rand (GBP/ZAR) and 0.5% against the Singapore Dollar (GBP/SGD).

The most recent UK development has been the announcement of the official choices for the UK’s ‘In’ and ‘Out’ campaigns, which have respectively been Britain Stronger in Europe and Vote Leave.

The decision has been somewhat contentious on the side of the ‘Leave’ campaigners, as multiple groups had been vying for the top spot in representing the ‘Brexit’ vote.

Euro (EUR) Soft after ECB Comments, US Dollar (USD) Boosted by Beige Book

The Euro (EUR) has mainly made gains against its peers today, although several instances of narrow trading and losses have also been recorded. Despite comments from the European Central Bank (ECB) yesterday doing little to encourage support of the single currency, the Euro has recently been aided by comments from ECB member Ewald Nowotny.

Speaking in New York yesterday, Nowotny said that:

‘I think one should not over-dramatize the low inflation rates that we just experience now. I think there will be movements towards a normalisation of inflation rates starting this summer’.

The Euro has risen by 0.2% against the Pound Sterling (EUR/GBP) today but fallen by -0.2% against the US Dollar (EUR/USD).

The ‘Buck’ (USD) has appreciated heavily against peers today, having been boosted by positive data out of the Federal Reserve’s recently released ‘Beige Book’. This document has shown slow but steady growth across the US.

Future GBP, EUR, USD Forecast: BoE Dovishness could Further Sterling’s Losses

The biggest UK announcement of the day will be the BoE interest rate decision, which is due at noon. Current forecasts are for another rate freeze.

The Euro’s biggest news will be the imminent positively prediction finalised inflation rate stats for March.

For the US Dollar, this afternoon will bring the national inflation rate results for March, which have been forecast optimistically.

Current GBP, EUR, USD Exchange Rates

The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2560, while the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7962.

The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.4133, with the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.7076.

The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1252 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.8890 today.

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