Home > Resource Hub > Daily Market News > Euro buyers wait for ECB and BOE Decisions

Euro buyers wait for ECB and BOE Decisions

Euro buyers wait for ECB and BOE Decisions

The Pound has found few friends this week as fears regarding the potential tone and content of this morning’s Bank of England forward guidance statement, along with talk of rates remaining lower for longer weigh it down.

A little later this morning, we have a rate decision from the European Central Bank but as with the Bank of England it is unlikely we’ll see either party offer us anything decisive. This is likely to leave the GBP to EUR rate pitifully low until we have some signal on interest rates in next Wednesday’s quarterly inflation report.

A tense market yesterday as all the information out of the US was absorbed. Strong employment data was the leader with an increase of 200k jobs in July. This figure was above the 180k estimate and we saw some further Dollar strength on the back of these figures across most major currencies.

The Euro fell from a six-week high versus the Dollar not just from the US employment data, but also on speculation that European Central Bank President Mario Draghi will reassure investors today that policy makers will keep interest rates low.

GBP/EUR trading around 1.1470 with nothing likely to lift it today. USD trading against Sterling at just over the 1.5200 and EUR/USD now at 1.3140.

Share this case study
Set yourself up in minutes, make payments the same day: it’s free, easy and without obligation.