FX News: Pound Sterling Euro Exchange Rate Staging Minor Recovery?

Modified: Wednesday, 5 October 2016 17:05 BST - Written by David Woodsmith

STORY LINK FX News: Pound Sterling Euro Exchange Rate Staging Minor Recovery?

Pound Sterling Euro Exchange Rate News: Forecast-Beating Services PMI Triggered Eventual Recovery for GBP Today

The Pound Euro (GBP EUR) exchange rate remains in a position of clearly reduced strength today, having been laid low following the weekend and the news that the latest trigger date for Article 50 would be March 2017.

Since then, a trio of better-than-expected UK September PMIs, covering manufacturing, construction and services have come out, though the positive impact of these has been severely delayed due to widespread negativity.

Also coming in today have been remarks from Prime Minister Theresa May, who has made bold (if unspecific) statements about how the country will be restructured under the current Conservative government.

British Pound Predictions: Uncertainty Ahead for GBP EUR after May’s Monetary Policy Comments

The next UK ecostats aren’t due until Friday morning, therefore and Pound movement over tomorrow may well come from any statements that happen to come from the Bank of England (BoE) or Theresa May.

As part of her closing speech today, May stated that change was needed when it came to ‘super low rates’, which has raised the possibility of Government involvement in BoE affairs, something that could be responded to before the week is up.
Friday’s UK ecostats will mainly be focused on August’s trade balance results, which are set to show a deficit reduction. Also out will be the manufacturing and industrial production stats for August; an industrial annual rise is expected alongside a manufacturing decline on the year.

Euro Daily Update: Fluctuations Recorded after ECB Official Sees ‘No Systemic Crisis’

Euro exchange rates have been decidedly mixed lately, with losses against the Pound being minimal; alongside this has come a rise of 0.5% against the Japanese Yen.

The most recent Eurozone economic news has been broadly negative, consisting of the overall services and composite PMI results for September, along with the August retail sales stats. In both cases, declines have been recorded.

Elsewhere, European Central Bank (ECB) official Ignazio Angeloni has offered reassurance on the European banking sector, stating that while individual institutions may be struggling, there is no overall threat of collapse.

Pound Euro (GBP EUR) Future Forecast: Eurozone Retail PMI Incoming along with Further Angeloni Comments

Eurozone ecostats to watch out for on Thursday will include the morning’s September retail PMI, as well as further closing comments from Angeloni during the afternoon.

Minor gins may results from the retail PMI’s announcement, given that current forecasts are for an advance from 51 points to 51.2.

Elsewhere, the morning will bring Greece’s unemployment rate for July, which previously hit 23.4% and is expected to reduce fractionally to 23.3%.

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TAGS: Currency Predictions Euro Forecasts Euro Pound Forecasts Pound Ster Forecasts