EU: Euro Pound, Euro US Dollar Exchange Rates Steady ahead of ECB’s September Policy Decisions
The Euro has steadily crept up against its rivals during today’s European trading session, though this investor optimism could be rapidly eroded by the afternoon’s Eurozone developments.
Euro exchange rates improve on daily data – Dutch inflation rises against expectations
Pound uncertainty seen after recession warning – NIESR raises doubts about ‘Brexit’ rebound
US Dollar in low demand despite Fed hawkishness – Low wage growth remains a problem
ECB rate decision and speech due today – UK Chancellor to give evidence over afternoon
The Pound has fluctuated considerably, while the US Dollar has found itself in low demand today due to major uncertainties about whether a Fed rate hike will take place in September.
Euro Exchange Rate News: Dutch Inflation Data Raises Appeal ahead of ECB News
The Euro has made moderate gains against peers today, consisting of advances of 0.2% against the Pound (EUR GBP) and 0.3% against the US Dollar (EUR USD).Domestic data out of the Eurozone has been limited so far today, with the Netherlands inflation rate for August and Greek unemployment rate for June having a slight positive effect on the common currency.
In the former case, the annual Dutch inflation rate has risen from -0.2% to 0.2%, while Greece has seen a fractional reduction in the unemployment rate from 23.6% to 23.4%.
Other Eurozone data has been less supportive, with negative results for Ireland’s August inflation rate seeing drops into negative ranges.
Pound makes Uncertain Movements while US Dollar Drops Off on Fed Rate Hike Concerns
The Pound has trended in a tight range against the US Dollar (GBP USD) today, while a greater decline of -0.3% has been recorded against the Euro (GBP EUR). Elsewhere, Sterling has generally been in low demand, having fallen heavily against many of its peers.
The last UK domestic data to come out yesterday was the National Institute of Economic and Social Research (NIESR) GDP report, which alarmingly estimated that the UK was still at high risk of entering a recession in 2017.
The US Dollar has been in a severe state of decline across the board, having dropped by -0.4% against the Euro (USD EUR) and a lesser amount against the Pound (USD GBP).
The latest US news has focused once again on the odds of a Fed rate hike taking place in September, with Fed official Jeffrey Lacker hawkishly saying;
‘It looks like the case for a rate increase is going to be strong in September’.
Contrary to this attitude, however, is the Fed’s Beige Book, which has indicated that low wage growth remains a limiting factor on how soon a rate hike can be safely implemented.
Future EUR GBP USD Forecast: ECB Rate Decision Imminent, UK Chancellor to Speak Later
The next major data to watch out for will come from the Eurozone, where the European Central Bank (ECB) will announce its interest rate decision for September. Some have forecast an expansion to quantitative easing. This will be followed by a press conference with ECB President Mario Draghi.
A lesser-impact development will come from the UK, where Chancellor Philip Hammond is scheduled to give evidence to the Lords Economic Affairs Committee over the afternoon.
Current EUR, GBP, USD Exchange Rates
The Euro Pound (EUR GBP) exchange rate was trending in the region of 0.8842 and the Pound Euro (GBP EUR) exchange rate was trending in the region of 1.1846 today.
The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.1287 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.8862 today.
The Pound US Dollar (GBP USD) exchange rate was trending in the region of 1.3370 and the US Dollar Pound (USD GBP) exchange rate was trending in the region of 0.7480 today.
