The Pound Sterling (GBP) has remained at loggerheads with the Euro (GBP/EUR) today, having failed to move into a positive range against the single currency (EUR).
Surprises for US Economic Publications have Flat Overall Impact on GBP/EUR
While the general assumption today was that the Euro (EUR) would soar against Pound Sterling (GBP) due to the US’s pessimism-inducing economic publications of the afternoon, the reality saw a neutral overall effect had by the shortfalling US Change in Non-Farm Payrolls and reduced unemployment rate for January.
Pound Sterling (GBP) as shown an improvement on its earlier exchange rate movement against the Euro (GBP/EUR), although at the time of writing the Pound was still in a negative state against the common currency (EUR).
Strong Dollar (USD) Could Override Current GBP/EUR Downtrend
The near future will see the announcement of the US Change in Non-Farm Payrolls data for January, which at the time of writing was forecast to show a 190k figure. In the unlikely event that the reality exceeds this forecast, the US Dollar (USD) may just rally, which would likely prove unfavourable to the Euro’s (EUR) prospects.
The Pound Sterling to Euro (GBP/EUR) exchange rate has been in a clear state of decline today, although on a somewhat positive note the Pound (GBP) has recovered slightly since yesterday’s mass downtrend triggered by the Bank of England (BoE) Interest Rate Decision.
GBP/EUR Exchange Rate News: Cameron Faces Polish PM Today in Referendum Term Talks
With no direct UK data out today, the Pound (GBP) cannot be expected to realistically rally against its competitors given the sheer weight of current negative conditions. While the situation has improved markedly since yesterday’s mass-crash displayed by the Pound, today still has the potential to generate GBP movement given ongoing events.
PM David Cameron is currently meeting with Poland’s PM, Beata Szydlo, in an effort to convince the first of many EU leaders that the terms of the UK referendum agreement are fair to both the UK and the European Union in equal measure. While the meeting is an obvious step closer to a finalisation of both the referendum terms and the actual vote date itself, it is worth noting that Szydlo has been vociferous about her opposition to discriminatory measures enacted by the UK against EU citizens, especially against her own countrymen.
Sterling has made losses of -0.2% against the Euro (GBP/EUR), -0.5% against the Swiss Franc (GBP/CHF) and -0.8% against the Israeli New Shekel (GBP/ILS) today.
Euro (EUR) Exchange Rate Down from the Week’s Best Rates
The Euro (EUR) has slumped against most of its competitors so far today, having been put into this disadvantageous position by the morning’s German Factory Orders, as well as another external development.
The factory orders for December fell to worse-than-expected lows, while in the wider field the US Dollar’s (USD) recovery lowered the general appeal of the common currency.
Euro movement today includes 0.3% against the Pound Sterling (EUR/GBP) and -0.3% against the Canadian Dollar (EUR/CAD).
GBP/EUR Exchange Rate Forecast: ‘Brexit’ Developments in Focus
With the impactful Eurozone data and lack of UK input compounding today’s status as a ‘slow news day’, the pairing may nonetheless be moved by the outcome of Cameron’s persuasion attempts in Poland. A unilateral show of acceptance on both sides is expected to generate support for Sterling (GBP), while a fraying of relations may only widen the current gaps between the Pound and its competitors.
Current GBP, EUR Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2985 and the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7702 today.