The Pound Sterling (GBP) has fallen by -1% against the Euro (GBP/EUR) today along with -0.5% against the US Dollar (GBP/USD).
The main cause for this poor showing is that Bank of England (BoE) Monetary Policy Committee (MPC) member Minouche Shafik has stated that she does not see the value of voting for a UK interest rate hike until the growth of wages is back on track.
Repetition from ECB’s Draghi Today, Euro (EUR) set to End on Mixed Note
The Euro (EUR), meanwhile, has been boosted slightly by a speech given by European Central Bank (ECB) President Mario Draghi, who has indicated once again that the ECB is prepared to do everything possible to ensure that the inflation rate target of around 2% is met ‘without due delay’.
The Pound Sterling to Euro (GBP/EUR) exchange rate has fallen by a minor amount today while the Pound Sterling to US Dollar (GBP/USD) exchange rate has declined by a greater degree. This is mainly on account of a distinct lack of investor confidence in the Pound (GBP) this morning.
GBP/EUR, GBP/USD Exchange Rate News: UK House Price Figures offer Disappointment Today
The Pound Sterling (GBP) has trended narrowly in a negative range against the Euro (GBP/EUR) today and a larger -0.3% drop has also been observed against the US Dollar (GBP/USD). Among the Pound’s other movements have been rises of 0.5% against the Danish Krone (GBP/DKK) and the Russian Ruble (GBP/RUB), but these have been balanced by a loss of -0.5% against the Australian Dollar (GBP/AUD) and a spectacular dive of -5.1% against the rallying South African Rand (GBP/ZAR). The GBP/EUR pairing result can be considered something of an improvement based on last week’s faring.
The latest UK domestic data has painted an unsatisfactory picture – the monthly December Rightmove House Prices have shifted from -1.3% to -1.1%, while the annual printing has risen from 6.2% to 7.4%. In both cases, those looking to buy and sell houses have been given news that may seem sour at present.
Mixed Trending for Euro (EUR) and US Dollar (USD) Today on Economic Expectations
The Euro (EUR) has advanced by a small amount against the Pound Sterling (EUR/GBP) today, but declined by -0.2% against the US Dollar (EUR/USD). This latter result has been the more general behaviour of the Euro today, with losses of -0.4% against the Indian Rupee (EUR/INR) and -5.2% against the South African Rand (EUR/ZAR) also being seen.
The day’s Eurozone results have actually defied expectations today and come out positively, with the October annual Industrial Production figure rising from 1.3% to 1.9%.
The US Dollar (USD) hasn’t had any economic announcements out yet today, which has resulted in some tight trending for the ‘Buck’. The recent shortfall in the University of Michigan Confidence score for December has done little to inspire investors in the currency ahead of this week’s Fed Interest Rate Decision.
The US Dollar has risen by 0.3% against the Pound Sterling (USD/GBP) and the Euro (USD/EUR) today but has dropped by -0.3% against the Canadian Dollar (USD/CAD) and -5.1% against the South African Rand (USD/ZAR).
GBP, EUR, USD Exchange Rate Forecast: UK Inflation Data Tomorrow, ECB Speeches Due
The next UK results to affect the movement of the Pound Sterling (GBP) will be tomorrow’s November CPI stats, which had positive predictions on the year and negative ones on the month at the time of writing.
For the Eurozone, the next events of note will be speeches by European Central Bank (ECB) official Carlos Costa and US economist Paul Krugman at a conference in Lisbon, while the US Dollar (USD) may be moved by the impending low-impact 3 and 6-Month Bill Sales.
Current GBP, EUR, USD Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3836, the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7228, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5164, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6595, the Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.0960 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9126 today.