The Pound Sterling (GBP) has advanced by 1.7% against the Euro (GBP/EUR) today and made lesser but still impressive gains against the US Dollar (GBP/USD) off the back of incredibly beneficial UK Retail Sales figures.
Pessimistically Forecast Eurozone PMIs to Open Tomorrow’s Trinity Movement
No UK results are due until next week, therefore further trinity movement is only likely to come from tomorrow’s glut of Eurozone PMIs which have negative forecasts assigned to them and the similarly predicted US Manufacturing PMI later on.
The Pound Sterling (GBP) has risen by small amounts against the Euro (GBP/EUR) and the US Dollar (GBP/USD) today, owing more to China investing billions in UK nuclear energy than the disappointing UK borrowing results of the day.
UK Retail Sales, ECB Interest Rate and US Claims to Look forward to Tomorrow
The three main announcements that are likely to affect the trinity tomorrow are the UK Retail Sales figures for September (which have been positively predicted), the European Central Bank (ECB) interest rate decision which has a freeze at 0.05% predicted and the US Initial Jobless and Continuing Claims results for earlier in October, which are both predicted to increase compared to previous postings.
The Pound Sterling (GBP) has made little progress against the Euro (GBP/EUR) or the US Dollar (GBP/USD) today due to a lack of UK data and an apparent crisis emerging in the UK steel industry.
GBP/EUR, GBP/USD Exchange Rate News: Chinese Presidential Visit Contrasts with Chinese Steel Overflow
The Pound Sterling (GBP) has trended narrowly in the negative against the Euro (GBP/EUR) today but rose marginally against the US Dollar (GBP/USD). The Pound’s performance has been mostly unimpressive, but a rise of 0.4% has been seen against the Israeli New Shekel (GBP/ILS). However, this has been offset by losses of over -0.3% against the New Zealand Dollar (GBP/NZD), the Swiss Franc (GBP/CHF) and the Swedish Krona (GBP/SEK).
The biggest burden on Sterling today has been the news that another UK steel mill is being hit by the over-competitiveness of other steel-producing countries, like China. According to reports, over 1,000 jobs are due to be lost at two of Tata Steel’s plants, news that follows on from the closure of the SSI Redcar Steelworks and the partial administration that Caparo Steel is now under. An overflow of cheap steel from China is thought to be one of the contributing factors to this crisis – coincidentally, Chinese President Xi Jinping begins his state visit to the UK today with the intention of strengthening economic ties.
Euro (EUR) takes the lead as ECB Capital Policy is Welcomed by Investors
The Euro (EUR) has advanced by 0.2% against the US Dollar (EUR/USD) and seen slight gains against the Pound Sterling (EUR/GBP) today while also advancing by 0.3% against the Japanese Yen (EUR/JPY). The common currency has fared well so far today, despite the day’s Eurozone data concerning German Producer Prices and the Eurozone Current Account both posting disappointing results. The most supportive news so far this week has been that the European Central Bank (ECB) has increased the minimum capital level required to be held by Eurozone banks.
The US Dollar (USD) has had a poor showing so far today – the lack of input from Fed official Jeffrey Lacker yesterday due to illness failed to provide investors with any positive words to base their enthusiasm on. As a result, the ‘Buck’ has fallen by -0.2% against the Euro (USD/EUR), declined fractionally against the Pound Sterling (USD/GBP) and dropped by greater amounts elsewhere.
GBP/EUR, GBP/USD Exchange Rate Forecast: UK Borrowing Data due Tomorrow, US Housing Figures Out This Afternoon
The next set of UK data will come tomorrow with the release of the UK governmental borrowing results for September; expectations are for a small reduction in the result compared to previous printings.
For the Eurozone, the only notable release will be the Government Debt-GDP Ratio for 2014, which has been classed as low-impact.
US input will come today from the respectively optimistically and pessimistically forecast US Housing Starts and Building Permits for September.
Current GBP, EUR, USD Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3635, the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7334, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5479, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6461, the Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1350 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.8812 today.