The Pound Sterling (GBP) has made losses of -0.2% against the Euro (GBP/EUR) and -1.3% against the US Dollar (GBP/USD) today, with these changes likely stemming from no apparent progress being made after PM David Cameron’s Brussels talks.
Dismissing ‘Emergency Brake’ Puts PM Back at ‘Brexit’ Square One
Despite earlier apparent optimism surrounding the suggested ‘Emergency Brake’ as an alternative to the PM’s 4-year benefits freeze, that positivity has been shattered this afternoon. Thoroughly rejecting the EU’s offering, Cameron has simply perpetuated the seemingly-endless UK Referendum negotiations, a move that has sent confidence in GBP plunging.
The Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates have both trended in a tight range today. On the wider playing field, the Pound (GBP) has generally made losses or minor gains against the competition.
GBP/EUR, GBP/USD Exchange Rate News: Quiet Day for GBP as PM Talks Referendum Fine Print
The Pound Sterling (GBP) has trended narrowly in a positive range against the Euro (GBP/EUR) today and done the same in a negative one against the US Dollar (GBP/USD), primarily on account of there being a UK data shortage at present.
The only recent release of note has been the Gfk Consumer Confidence Survey for January, which has risen from 2 points to 4 instead of falling to 1 as forecast. Elsewhere, PM David Cameron has been in Brussels trying to lock down a finalisation on the UK Referendum terms, but at the time of writing, the controversial ‘emergency brake’ plan to freeze in-work migrant benefits for 4 years remained a notable stumbling block.
The Pound’s other movements today have included -0.5% against the New Zealand Dollar (GBP/NZD) and -0.9% against the Mexican Peso (GBP/MXN) but a gain of 1.4% against the Japanese Yen (GBP/JPY).
Euro (EUR) Flops on Mixed Eurozone Ecostats while US Dollar (USD) Destabilised by BoJ Move
The Euro (EUR) has largely been in a state of decline today, having recorded losses of -0.2% against the US Dollar (EUR/USD) and -0.4% against the Indian Rupee (EUR/INR). Gains have included a 0.2% advance against the Pound Sterling (EUR/GBP) and 1.4% against the Japanese Yen (EUR/JPY).
The biggest Eurozone data of the day has seen the overall CPI rise in January, news that was countered by Germany’s weak December Retail Sales and a reduction in the Eurozone’s Monetary Supply in the same month.
The US Dollar (USD) has made trifling movements against the competition today, having fallen by -0.6% against the South African Rand (USD/ZAR). In other pairings, however, the ‘Buck’ has advanced by 0.4% against the Pound Sterling (USD/GBP) and 1.5% against the Japanese Yen (USD/JPY).
The primary cause behind this middling movement is thought to be a recent detrimental development out of Japan, where the Bank of Japan (BoJ) has cut the interest rate to -0.1% against forecast.
GBP, EUR, USD Exchange Rate Forecast: US Data Remains only Source of Input Today
The next movement in the trinity is set to come from the US, with the announcement of the nation’s annualised Q4 GDP out this afternoon. Current forecasts are for a slowdown in growth from 2% to 0.8%.
Next week will open on Monday with Eurozone data, covering the Manufacturing PMIs of a number of countries.
The next scheduled UK release will come shortly afterwards in the form of the December Mortgage Approvals.
Current GBP, EUR, USD Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3104, the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7634, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.4301, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6992, the Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.0919 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9163 today.