British Pound Value: GBP/EUR Leaps To Best Foreign Exchange FX Rate Of 1.195 On US Dollar Sell-off

The British Pound has been in high demand against the Euro (GBP/EUR) and the US Dollar (GBP/USD) today, though positive UK data has been somewhat lacking..
The British Pound has been in high demand against the Euro (GBP/EUR) and the US Dollar (GBP/USD) today, though positive UK data has been somewhat lacking..

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  • The Pound to Euro exchange rate today (02/12/16): +0.16pct at 1.183, Best 24hr GBP/EUR rate 1.18447.

 

 

  • The Euro to Dollar exchange rate today: -0.11% at 1.06508, Best 24hr EUR/USD rate 1.06900.
  • Pound Sterling Forecast:GBP/USD vulnerable to today’s Non-Farm payrolls data release.

 

The GBP trended above the key 1.194 level against the euro on Thursday afternoon despite the morning’s solid Eurozone ecostats, thanks to increased hopes for the UK to someone maintain access to the European Union’s single market after Brexit.

This also bolstered the Pound to US Dollar exchange rate, which performed even better as Thursday’s US jobless claims report disappointed US markets.

Thursday’s major UK data has already come and gone today, and the manufacturing PMI for November dropping has not been an especially positive result for GBP traders.

However, the dip from 54.2 to 53.4 points has not been the end of the world for the UK industry, given that a figure above 50 still indicates growth in the sector.

The British Pound to Euro exchange rate had trended relatively flatly on Wednesday afternoon as Sterling trade cooled after its high volatility earlier in the week.

However, as the session progressed the GBP/EUR jumped to 1.18 and the GBP/USD rose to 1.25154.

Euro Lacks Momentum

The Euro lacked the momentum to advance despite the day’s solid Eurozone stats as the coming week’s Eurozone events weighed.

Meanwhile, the Pound to US Dollar exchange rate slipped, performing much poorer than the sturdy performance seen in the morning due to an impressive US November employment change result from ADP.

As the modest strengthening in Eurozone inflation is considered unlikely to deter the ECB from extending its quantitative easing program the appeal of the Euro has remained limited.

With investors still generally bullish on the US Dollar, meanwhile, the GBP/USD exchange rate has remained on a downtrend.

There were positives and negatives in the Bank of England’s (BoE) latest Financial Stability Report, keeping Pound Sterling exchange rates on an uneven footing.

On the one hand, Royal Bank of Scotland (RBS) failed the stress tests and the report found that the UK’s current account is vulnerable to a drop in investor appetite.

However, BoE Governor Mark Carney also noted that the tests overall showed that ‘the UK banking system is well placed to provide credit to households and businesses during periods of severe stress’

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The latest Pound Sterling currency FX market rates are;

On Saturday the Euro to British Pound exchange rate (EUR/GBP) converts at 0.838

Today finds the pound to euro spot exchange rate priced at 1.193.

Today finds the pound to us dollar spot exchange rate priced at 1.273.

Please note: the FX rates above, updated 3rd Dec 2016, will have a commission applied by your typical high street bank. Currency brokers specialise in these type of foreign currency transactions and can save you up to 5% on international payments compared to the banks.

Headline Eurozone data was positive, but not very impressive, meaning Euro exchange rates remained soft despite the forecast-matching results.

German unemployment figures for November showed that the number of jobless people shrank by -5,000 – a positive development, but not enough to push the unemployment rate below 6%.

Eurozone consumer price growth estimates have clocked in at a slightly higher 0.6% and a consistent 0.8% for the non-core and core indices respectively.

The data is all positive, but coming in on forecast and failing to show any strong improvement has dampened the positive impact these releases could have had on Euro exchange rates.

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The US Dollar is stuck around opening levels thanks to the approach of a US data glut which could further increase the already bloated bets of Fed policy tightening next month.

US Dollar exchange rates are trending in a narrow range today after yesterday’s surge on the back of bullish consumer confidence figures.

The confidence index rose over six points to hit 107.1, sending USD on the advance as analysts had only predicted a 0.7 point increase to 101.5.

Today’s data could further support the US Dollar, thus traders are currently in wait-and-see-mode until the bulk of the afternoon’s glut of reports has been published.

US Data Forecast to Dominate Pound Sterling Exchange Rate Movement

The day’s UK data has already been released and has seemingly created little solid momentum for Pound Sterling in either direction, suggesting GBP will continue to trend sideways.

The European Central Bank (ECB) Chief Mario Draghi is due to speak today, but he has already warned markets that monetary policy needs to remain supportive, limiting the potential for downside Euro risks.

The US economic calendar, however, promises many developments, including speeches by the Federal Reserve’s Kaplan, Powell and Mester, as well as personal consumption figures; the Fed’s favourite measure of inflation.

JAMES GILLINGHAM

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