The Pound Sterling (GBP) has fallen by -0.2% against the US Dollar (GBP/USD) today but risen by a minor amount against the Euro (GBP/EUR), following the deterioration of peaceful protests in the Greek capital of Athens.
Rising US Dollar (USD) Indicates Investor Confidence in Fed Speeches due Shortly
The strong current condition of the US Dollar (USD) is something of a sign that investors are hoping for hawkish attitudes from Fed officials in the near future, although given how long it is until the next FOMC Interest Rate Decision, even hawkishness now may turn to dovishness in time.
The Pound Sterling (GBP) has risen by 0.3% against the Euro (GBP/EUR) today and fallen by -0.2% against the US Dollar (GBP/USD). The only UK data of the day has been inconclusive – the Royal Institute of Chartered Surveyors (RICS) has recorded a rise in house prices up to 49%, which the Institute has forecast will mean that UK houses will become ‘even more unaffordable’ during the next five years.
US Claims Data Next Release to Trigger GBP/USD Movement
The next major release for the trinity will be the US Initial Jobless and Continuing Claims for the end of October and the beginning of November, which were forecast to respectively fall and rise compared to previous figures.
The Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates have respectively fallen and risen by marginal amounts today and the Pound (GBP) has trended narrowly against many other rivals due to inconclusive UK data.
GBP/EUR & GBP/USD Exchange Rate News: Carney’s Speech and UK Domestic Data Balances Out GBP Movement Today
The Pound Sterling (GBP) has fallen fractionally against the Euro (GBP/EUR) but risen by a similar amount against the US Dollar (GBP/USD) today; this is mainly on account of UK economic events providing an unstable platform for an uptrend to take place. In other pairings, the Pound has declined by -0.6% against the South African Rand (GBP/ZAR) and -0.8% against the Turkish Lira (GBP/TRY), but has managed gains of 0.2% against the Omani Rial (GBP/OMR) and 0.3% against the Indian Rupee (GBP/INR).
The main occurrences that have affected the Pound today have been the fall from 5.4% to 5.3% for the UK ILO Unemployment Rate for the three months to the end of September, the 3.3k count rise in Jobless Claims in October and a speech from Bank of England (BoE) Governor Mark Carney.
Speaking at the BoE’s Open Forum, Carney spoke on the need for banks and bankers to hold more individual responsibility in the future and more decisively, indicated that he thought the UK economy was sufficiently strong to resist outside risks such as the apparent Chinese slowdown.
Lack of Hard Data puts EUR/GBP in Narrow Range, US Dollar Low on Yesterday’s Results
The Euro (EUR) has moved in uncertain directions today, as in addition to weak German data, the Euro has also been negatively affected by developments in Greece and Portugal recently. The single currency has trended narrowly in a positive range against the Pound Sterling (EUR/GBP) today, but has fallen by -0.5% against the South African Rand (EUR/ZAR). Against the US Dollar (EUR/USD) and the Indian Rupee (EUR/INR), the common currency has risen by over 0.2%.
The US Dollar (USD) has trended narrowly in a negative range against both the Pound Sterling (USD/GBP) and the Euro (USD/EUR) today; elsewhere, a -0.7% decline has been recorded against the South African Rand (USD/ZAR) and a 0.2% rise has been seen against the Indian Rupee (USD/INR).
The most recent US data was yesterday’s positive Wholesale Inventories figure for September, which was balanced out by negative printings from the Import Price Indices for October.
GBP, EUR, USD Exchange Rate Forecast: ECB’s Draghi’s Speech and US Mortgages Left Today
The UK’s economic announcements are all out for today, therefore further movement can only be expected from a speech from a European Central Bank (ECB) official and a US economic publication.
The Eurozone’s contribution to the exchange rate will be a speech from ECB President Mario Draghi this afternoon; Draghi is expected to speak on the ECB’s use of quantitative easing (QE) and if previous talks are any indication, a reiteration that the scale of this measure could be reduced after the ECB’s December review is highly likely to raise the Euro’s (EUR) value temporarily.
From the US will come the MBA Mortgage Applications up to November 6th. At the time of writing, no forecasts had been made, but the previous result saw a -0.8% decline.
Current GBP, EUR, USD Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4096, the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7096, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5152, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6601, the Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.0751 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9307 today.