The Pound Sterling to Euro (GBP/EUR) exchange rate has declined slightly today and the Pound Sterling to US Dollar (GBP/USD) exchange rate has made no progress as mixed UK economic publications have muddied the waters ahead of the Bank of England’s (BoE) set of releases.
GBP to EUR, USD Exchange Rate News: Rising House Prices and Falling Car Sales Unsettle Sterling
The Pound Sterling (GBP) has declined fractionally against the Euro (GBP/EUR) today and been in a stalemate against the US Dollar (GBP/USD). Elsewhere, the Pound has risen by over 0.4% against the Turkish Lira (GBP/TRY) and the Indian Rupee (GBP/INR), but dropped by -0.4% against the Polish Zloty (GBP/LN) and -1% against the Norwegian Krone (GBP/NOK).
In addition to investors remaining tense ahead of the BoE releases due today, the rise in the Halifax PLC House Prices for the later weeks of October and the fall by -1.1% for UK annual New Car Registrations in October has resulted in the Pound being in an unstable position.
Euro (EUR) & US Dollar (USD) Exchange Rates Put on Middling Performance Today
The Euro (EUR) has made mild gains against the Pound Sterling (EUR/GBP) and the US Dollar (EUR/USD) today, with greater result of over 0.4% against the Swiss Franc (EUR/CHF) and the Indian Rupee (EUR/INR) making up the rises. The most notable fall has been by -0.3% against the Polish Zloty (EUR/PLN).
The Euro’s movement today has been dictated by negative German Factory Orders in September and a decline in the German Construction and Retail PMIs for October.
The US Dollar (USD) has fallen slightly against the Euro (USD/EUR) and risen marginally against the Pound Sterling (USD/GBP) today. Other result have included a 0.4% rise against the Indian Rupee (USD/INR) and a -1% drop against the Norwegian Krone (USD/NOK).
No US data has been released yet today, but yesterday’s somewhat hawkish statements from Fed Chair Janet Yellen have gone some way to keep the ‘Buck’ above water.
GBP/EUR, USD Exchange Rate Forecast: Bank of England’s (BoE) Super Thursday due to Generate Major Movement Today
The next releases due to affect the Pound Sterling (GBP) will all come from the BoE, in the form of the BoE Monetary Policy Committee (MPC) Interest Rate Decision, the Inflation Report and most crucially, the BoE’s Minutes. No economists have predicted a UK interest rate hike taking place this year, therefore the minutes are sure to be scoured for any signs of dissent among policymakers, particularly with regard to the distribution of votes. Previously, only Ian McCafferty has voted in favour of a rate hike, but some speculators have been optimistic enough to predict a 3-6 split this time around.
Eurozone announcements will come earlier, with a speech from European Central Bank (ECB) President Mario Draghi in Milan today. While yesterday’s speech in Frankfurt failed to inspire much confidence among investors due to it not mentioning pertinent issues such as quantitative easing (QE), today will provide another opportunity for Draghi to push the Euro (EUR) up or down based on his tone when speaking.
The US Dollar is also likely to be affected by Fed speeches in the future, although before these, the Continuing and Initial Jobless Claims for the end of October will be released. At the time of writing, only negative forecasts had been made for the result.
Current GBP, EUR, USD Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4156, the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7064, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5383, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6501, the Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.0867 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9205 today.