GBP/EUR – British Pound Dives on ‘Brexit’ Uncertainty
The Pound Sterling to Euro exchange rate has softened from a high of 1.3004 this week to a low of 1.2604. The British asset initially declined in response to news that political heavyweight Boris Johnson, Mayor of London, will be backing the campaign for Britain to leave the European Union. The Pound came under further pressure after Bank of England (BoE) Governor Mark Carney stated that the central bank has room to ease policy if EU referendum uncertainty continues to negatively impact the economy.
EU referendum speculation continued dominating trader focus with the Pound falling in reaction to comments from Conservative MP Michael Gove. Gove stated that the deal that Prime Minister David Cameron struck with EU member states was not ‘legally binding’ as the PM has claimed. The long period of uncertainty leading up to the referendum vote on June 23rd is likely to have an adverse effect on demand for the British Pound for the foreseeable future. The UK’s growth data, which printed at 0.5% on the quarter and 1.9% on the year in Q4 2015, failed to lend the Pound any support and the GBP/EUR exchange rate remains in the region of a 14-month low.
GBP/USD – ‘Cable’ Trending Close to 7-Year Low
With Sterling dropping across the board, the GBP/USD exchange rate skidded to 1.3880 to from 1.4407 this week. In the aftermath of Boris Johnson’s support of the ‘leave’ campaign the GBP/USD exchange rate dropped to its lowest level in seven years. The US Dollar has endured a mixed performance since the turn of the year as traders are unsure of the Federal Reserve’s approach to monetary policy. However, the ‘Greenback’ (USD) has generally advanced this week despite the publication of disappointing domestic data amid heightened demand for safer assets.
The Pound remains languishing at a multi-year low against the US Dollar in spite of comments from Federal Reserve official James Bullard. Although some industry experts are still hoping for a rate hike in Q2 2016, Bullard asserted that the central bank would be foolish to tighten policy further in the current climate. The remarks saw the US Dollar pare some of its recent gains and hold losses even as US durable goods orders surged by 4.9% in January, smashing forecasts for an increase of 2.9%.
USD/GBP – Bullishness Forecast to Continue Despite Delayed Fed Bets
Given the extent of the Sterling declination, and with a long period of political uncertainty ahead, there is a high chance that the USD/GBP conversion rate will continue to appreciate. Even with many high profile analysts delaying bets regarding a Federal Reserve benchmark interest rate hike the US Dollar will find support from safe-haven demand while the Pound’s appeal will be compromised by ongoing ‘Brexit’ concerns. .
EUR/USD – Euro Fluctuates on CPI Data
Bucking recent trends, the Euro has struggled versus many of its currency rivals this week. Speculation that the European Central Bank (ECB) will ease policy in March has contributed to the Euro’s depreciation, as has less-than-impressive data from the Eurozone and its largest economy.
The Euro continues holding the Pound at bay but put on a mixed performance against the US Dollar as January inflation data for the currency bloc was negatively revised. Movement was fairly limited however as traders are reluctant to make significant Euro moves ahead of the ECB’s policy decision as the Frankfurt-based central bank has previously failed to ease policy in line with expectations. Before the weekend growth data from France and consumer price data from the Eurozone could prompt Euro movement.
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GBP/EUR – British Pound Dives on ‘Brexit’ Uncertainty
The Pound Sterling to Euro exchange rate has softened from a high of 1.3004 this week to a low of 1.2604. The British asset initially declined in response to news that political heavyweight Boris Johnson, Mayor of London, will be backing the campaign for Britain to leave the European Union. The Pound came under further pressure after Bank of England (BoE) Governor Mark Carney stated that the central bank has room to ease policy if EU referendum uncertainty continues to negatively impact the economy.
EU referendum speculation continued dominating trader focus with the Pound falling in reaction to comments from Conservative MP Michael Gove. Gove stated that the deal that Prime Minister David Cameron struck with EU member states was not ‘legally binding’ as the PM has claimed. The long period of uncertainty leading up to the referendum vote on June 23rd is likely to have an adverse effect on demand for the British Pound for the foreseeable future. The UK’s growth data, which printed at 0.5% on the quarter and 1.9% on the year in Q4 2015, failed to lend the Pound any support and the GBP/EUR exchange rate remains in the region of a 14-month low.
GBP/USD – ‘Cable’ Trending Close to 7-Year Low
With Sterling dropping across the board, the GBP/USD exchange rate skidded to 1.3880 to from 1.4407 this week. In the aftermath of Boris Johnson’s support of the ‘leave’ campaign the GBP/USD exchange rate dropped to its lowest level in seven years. The US Dollar has endured a mixed performance since the turn of the year as traders are unsure of the Federal Reserve’s approach to monetary policy. However, the ‘Greenback’ (USD) has generally advanced this week despite the publication of disappointing domestic data amid heightened demand for safer assets.
The Pound remains languishing at a multi-year low against the US Dollar in spite of comments from Federal Reserve official James Bullard. Although some industry experts are still hoping for a rate hike in Q2 2016, Bullard asserted that the central bank would be foolish to tighten policy further in the current climate. The remarks saw the US Dollar pare some of its recent gains and hold losses even as US durable goods orders surged by 4.9% in January, smashing forecasts for an increase of 2.9%.
USD/GBP – Bullishness Forecast to Continue Despite Delayed Fed Bets
Given the extent of the Sterling declination, and with a long period of political uncertainty ahead, there is a high chance that the USD/GBP conversion rate will continue to appreciate. Even with many high profile analysts delaying bets regarding a Federal Reserve benchmark interest rate hike the US Dollar will find support from safe-haven demand while the Pound’s appeal will be compromised by ongoing ‘Brexit’ concerns. .
EUR/USD – Euro Fluctuates on CPI Data
Bucking recent trends, the Euro has struggled versus many of its currency rivals this week. Speculation that the European Central Bank (ECB) will ease policy in March has contributed to the Euro’s depreciation, as has less-than-impressive data from the Eurozone and its largest economy.
The Euro continues holding the Pound at bay but put on a mixed performance against the US Dollar as January inflation data for the currency bloc was negatively revised. Movement was fairly limited however as traders are reluctant to make significant Euro moves ahead of the ECB’s policy decision as the Frankfurt-based central bank has previously failed to ease policy in line with expectations. Before the weekend growth data from France and consumer price data from the Eurozone could prompt Euro movement.