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Timid Euro (EUR) Rudderless against Peers, Pound Sterling (GBP) Soft Overall on UK Data

  • Euro flat against peers as ECB speech approaches
  • Uncertainty high among investors over possible ECB action in the future
  • Pound Sterling slides after claims count increases
  • Central bank speeches to generate pairing movement over the rest of the day

The Euro (EUR) has levelled out against its peers overall today, owing to a high level of tension developing among investors in the single currency.

The Pound (GBP) has conversely dropped off against its rivals, on account of a disappointing set of outcomes to the morning’s domestic data.

Eurozone Economic News: Falling German PPI Results Unsettle Investors after UBS Comments

The Euro (EUR) has generally been trending in a tight range against its peers today, owing to the day’s Eurozone data so far doing little to inspire confidence in the single currency. This comes as something of a contrast to yesterday’s movement.

German producer prices for March have fared poorly in both categories, having shifted from -0.5% to 0% on the month and from -3% to -3.1% on the year.

While not exceptional data in itself, this outcome nonetheless implies that the European Central Bank (ECB) will be forced to do more to combat historically low inflation in the Eurozone at its next meeting. However, this comes at odds with recent comments from UBS Group AG Chairman Axel Weber, who was previously President of Bundesbank.

Speaking yesterday, Weber spoke against further ECB intervention stating:

‘We are now at a point…probably [where] the net benefits of further monetary easing, in particular in Europe…are outweighed by the costs and side effects’.

Euro gains today have included a 0.3% rise against the New Zealand Dollar (EUR/NZD), while losses have mainly consisted of a -0.3% dip against the South African Rand (EUR/ZAR). Against the Pound, the Euro has recorded a gain of 0.2% (EUR/GBP).

Pound Sterling (GBP) Flags on Lacklustre Ecostats

The Pound Sterling (GBP) has been a poor prospect overall today, having slumped by -0.2% against the Euro (GBP/EUR), -0.3% against the Australian Dollar (GBP/AUD) and -0.5% against the South African Rand (GBP/ZAR).

The main cause for this loss of investor interest has been the morning’s UK ecostats, which have shown a smaller-than-expected rise in the number of employed for the three months to the end of February, a similarly disappointing outcome for the average weekly earnings including bonuses for the same period and an unwelcome rise in the number of jobless claims made in March.


Future Eurozone, UK Economic Forecast: ECB President Speech due Shortly along with BoE Contributions

The next economic announcement of note for the EUR/GBP exchange rate will come from the Eurozone, in the form of a scheduled speech from European Central Bank (ECB) President Mario Draghi. The policymaker may be discussing the central bank’s potential policy decisions in the future, which could have a major impact on the Euro’s (EUR) appeal if a more positive outlook is put forward.

The next incoming UK releases will also come from central bank officials, with Bank of England (BoE) members Ian McCafferty and Andrew Hauser being scheduled to speak this afternoon and evening respectively.

Current EUR, GBP Exchange Rates

The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7912 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2639 today.