Pound Sterling Down, US Dollar Trade Slows Over Thanksgiving Holiday
Pound Sterling and the Euro are only marginally down against the US Dollar as the ‘Buck’ experiences little movement over the Thanksgiving holiday. Pound Sterling has clawed back ground, reducing US Dollar and Euro gains to less than 0.1%.
The Pound Sterling to Euro (GBP/EUR) exchange rate is trending higher despite positive Eurozone data, while the Pound Sterling to US Dollar (GBP/USD) currency pair is experiencing little movement ahead of key US statistics later today.
GBP/EUR, GBP/USD Exchange Rate News: George Osbourne Outlines UK Borrowing Plans
George Osbourne is currently announcing his plans for future UK spending in the Autumn Statement. It comes after figures showed a £4 billion deficit in public finances which cast doubt over the UK’s ability to meet future budget targets. Pound Sterling has been falling since, although trader activity has slowed as investors await the results of the Statement.
While the Pound is experiencing little movement against several of the major currencies, it has made gains of 0.4% on the Euro. This could be due to the fact that, despite positive economic news from the Eurozone, the European Central Bank (ECB) is still likely to either cut interest rates or increase its €1 trillion quantitative easing programme during the imminent December 3rd meeting.
While the GBP/EUR exchange rate is bullish, the GBP/USD exchange rate is currently experiencing little movement.
Euro (EUR) Falls Ahead of Likely ECB Stimulus, US Dollar (USD) Cautious Ahead of Key Data
The Euro has declined against the Pound today despite a slew of positive economic news over the past two days which showed a faster-than-expected rate of growth in German and Eurozone manufacturing and service sectors. The common currency is falling against the majority of currencies today, with just over a week to go until the next ECB monetary policy meeting.
‘Debt sustainability challenges remain for euro area sovereigns, in particular on account of the downside risks to the economic outlook coming from higher macro-financial vulnerabilities in some emerging economies,’ the European Central Bank has warned.
The Euro has fallen -0.4% against Pound Sterling and -0.3% against the US Dollar, the Australian Dollar (AUD) and the New Zealand Dollar (NZD).
The US Dollar is experiencing bullish rises against a small number of currencies, including a 0.3% rise against the Euro and 0.5% against the Polish Zloty (PLN) and the South African Rand (ZAR). Apart from these strong performances, the ‘Buck’ (USD) is trending narrowly as traders take stock ahead of US data releases due out later in the European session. Key amongst the slew of data will be the Durable Goods Orders, which are forecast to grow by 1.5% on the previous month and Year-on-Year Personal Consumption Expenditure Core (YoY) rising to 1.4%.
GBP, EUR, USD Exchange Rate Forecast: Autumn Statement in Focus
The GBP/EUR and GBP/USD exchange rates could see dramatic movement as George Osbourne announces his renewed UK spending plan in the Autumn Budget this morning. It is estimated that Osbourne will need to find an extra £11 billion worth of savings in order to still be on track to meet his target of a 2019/20 budget surplus. Experts predict harsher spending cuts and if these fears are realised the Pound could slump.
The Eurozone has seen a strong week of data releases, although there are still important figures to come out, including the German Consumer Confidence Survey and the German Retail Sales figures.
There is an overwhelming amount of US data due out today, including Mortgage Applications, Jobless Claims and Personal Spending.
Current GBP, EUR, USD Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4206, with the Euro to Pound Sterling (EUR/GBP) exchange rate trading around 0.7038.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5073, with the US Dollar to Pound Sterling (USD/GBP) exchange rate trading around 0.6638.
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.0612, with the US Dollar to Euro (USD/EUR) exchange rate trading around 0.9420.