Pound Sterling (GBP) has slipped by more than -0.3% against the Euro (GBP/EUR) and the US Dollar (GBP/USD) this afternoon, during a period of marked avoidance in Prime Minister’s Questions.
Refusal to Address Most Recent Attack Leaves Open Wound for PM’s ‘In’ Campaign
The afternoon’s most notable UK political development has been Prime Minister’s Questions, which have covered the NHS, spending on defence, Jeremy Corbyn’s attire and notably, not the recent statement from Justice Secretary Michael Gove that UK-EU Referendum terms would not necessarily be legally binding.
While speakers have been vociferous on the issues covered, not addressing such a fundamental attack on the ‘In’ campaign has done little to sate investors looking for some positive UK news.
Both the Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates have been in a state of decline today, with the instigating factor being the ongoing turmoil generated by the UK Referendum campaigns.
GBP/EUR, GBP/USD Exchange Rate News: Defence Chiefs say ‘In’, Justice Secretary says ‘Out’
Pound Sterling (GBP) has recorded a large number of losses today, ranging from small dips of -0.2% against the Euro (GBP/EUR) and -0.5% against the US Dollar (GBP/USD) to greater declines of -0.6% against the United Arab Emirates Dirham (GBP/AED) and -0.7% against the Singapore Dollar (GBP/SGD). Among the few gains have been 0.3% against the Russian Ruble (GBP/RUB) and 0.5% against the Hungarian Forint (GBP/HUF).
The most recent news in the UK Referendum spectacle has been the announcement from 13 ex-defence chiefs that while the UK would have to combat terrorism with or without the EU, in the former case, ‘we are stronger’.
As a counter-argument, Justice Secretary Michael Gove has issued a stark rebuttal of the PM’s claims that a UK-EU referendum term adjustment would be legally binding, by simply stating that it would not be until finally ratified as part of the EU’s treaty.
Euro (EUR) Sliding Today while US Dollar (USD) Recovers Appeal
The Euro (EUR) has been in a downtrending state so far today, while the US Dollar (USD) has steadily picked up in terms of market appeal.
In the former case, the single currency is potentially still reeling due to yesterday’s lacklustre dissatisfying German ecostats, as well as the fact that today brings little in terms of impactful Eurozone data.
The Euro has slipped by -0.3% against the US Dollar (EUR/USD) today but risen by 0.3% against Pound Sterling (EUR/GBP).
In the latter, the US Dollar has appreciated against a majority of the competition, with the most likely cause being the statement from Fed Vice Chair Stanley Fischer that in addition to approaching the next interest rate decision with an open mind, the Fed also has ‘no plans…at present’ to implement negative interest rates.
Notable USD gains today include 0.7% against Pound Sterling (USD/GBP) and 1% against the Norwegian Krone (GBP/NOK).
GBP, EUR, USD Exchange Rate Forecast: CBI Sales, Bundesbank Speech and US Home Stats Out Today
The next economic announcement likely to affect the pairing will be the UK’s Confederation of British Industry (CBI) reported sales figure for February, which was forecast to drop from 16 to 12 when last consulted.
The US’s largest contributions today will come from the imminent MBA February mortgage applications result, as well as the January new home sales statistic. In the latter case, predictions are for a shift from 544k to 520k.
The only notable Eurozone input today is set to come from an afternoon speech by Bundesbank President Jens Weidmann.
Current GBP, EUR, USD Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2676, the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7890, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.3925, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.7182, the Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.0983 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9108 today.