The Pound and Euro have found themselves under pressure against the US Dollar exchange rate in recent sessions. Now the Brexit break is over, and UK politics look shaky once again, and economic data is back in focus, there could be more GBP/EUR, GBP/USD, EUR/USD exchange rate movement ahead.
Pound US Dollar (GBP/USD) Exchange Rate Movement
Yesterday, the Pound fell to levels not seen since mid-February against the US Dollar (GBP/USD) off the back of upbeat economic data from across the Atlantic. With Brexit concerns weighing on Sterling, there was no scope for a rebound on the pair either, and while political pressure continues to weigh on the British currency, then further downside could follow.
Euro US Dollar (EUR/USD) Exchange Rate Under Pressure
The Euro also came under some pressure against the US Dollar off the back of positive ecostats yesterday. A test of fresh three-week lows followed and this proved to be short-lived, although there are still questions over the currency bloc’s outlook. The calendar is light on data this week and therefore comments from senior European Central Bank (ECB) members tomorrow will be in sharp focus.
Pound Euro (GBP/EUR) Exchange Rate Volatility
Despite some volatility during yesterday’s session as many returned to work after the long weekend, Sterling is continuing its sideways trend against the Euro. While UK economic data continues to attract optimism, the Pound may be able to limit downside risk, but investors will be keeping an eye on fundamental data moving forwards.
Pound, Euro, US Dollar Exchange Rate Influencers Today
Today saw the release of the latest German IFO surveys. The Business Climate Survey declined from 99.9 to 99.2, while the Expectations survey also sank, falling from 96.0 to 95.2. The German Current Assessment survey slipped from 103.6 to 103.3. The Business Climate survey is one of Germany’s most important leading indicators, and the fall indicated that sentiment couldn’t be bolstered, despite a Brexigt reprieve, positive data out of China, and suggestions of improved global trade. The Pound remains in a tight range against the Euro, trending in the region of 1.1533.
It’s a relatively quiet day for data, with only the weekly Mortgage Applications and Crude Oil Inventories stats due out of the US. The Pound to US Dollar exchange rate is trending in a narrow range, in the region of 1.2935. Any comments on Brexit could influence the GBP exchange rate further.