Currency news

EUR weakness persists

Head of FX Analysis at Equals Money
-
3
min read
Publish date
29/08/24
    • GBPEUR is looking to test July highs
    • Further signs of US job weakness?


    Yesterday's currency recap

    End-of-month flows continued to contribute to EUR weakness and USD gains over the course of the day, with GBPEUR persistently climbing to new one-month peaks.

    Due to nerves ahead of Nvidia’s quarterly financial results, US equities fell in the afternoon, which largely led to a broad GBP weakness, with the exception of GBPEUR and GBPDKK. Despite surpassing analyst predictions, when the results were released, they fell short of some ambitious hopes.

    Initial market reaction saw equities continue to drop but there were signs of recovery early this morning.

    Today's GBP rates

    Currency pair Daily move* Indicative rate**
    GBPAUD -0.28% 1.9465
    GBPCAD -0.32% 1.7771
    GBPCHF -0.40% 1.1114
    GBPDKK 0.05% 8.8501
    GBPEUR 0.05% 1.1866
    GBPJPY -0.15% 190.6370
    GBPNOK -0.12% 13.8552
    GBPNZD -0.28% 2.1149
    GBPSEK -0.10% 13.4454
    GBPUSD -0.45% 1.3203


    *Daily move - against
    G10 rates at 7:30am, 29.08.24

    ** Indicative rates - interbank rates at 7:30am, 29.08.24

    Key data points

    Currency Event Period Consensus Previous
    EUR Consumer Confidence Aug -13.40
    EUR German CPI MoM Aug 0.00% 0.30%
    EUR German CPI YoY Aug 2.10% 2.30%
    USD GDP QoQ Q2 2.80% 2.80%
    USD Core PCE QoQ Q2 2.90% 2.90%
    USD Initial Jobless Claims Aug 24 232,000 232,000

    What we think

    There is finally some data for us to sink our teeth into. The US GDP and core PCE numbers are second estimates so may not have much of an impact on the market, therefore focus will probably fall on the jobless claims numbers.

    Fed Chair Powell sounded out some nervousness about the speed at which the job market in the US is weakening, so we could see this number come in higher than expected, likely adding even more weakness to USD.

    National CPI numbers across Europe are also out this morning. Spanish numbers showed that CPI continues to cool for a third consecutive month, seeing some early EUR weakness. We are also expecting Germany’s numbers later this evening and EU numbers tomorrow. When it comes to GBPEUR, it still looks like we could see a test of the highs seen back in July.

    We specialise in currency guidance

    Our team of currency experts are here to help you get more from your money when making international transfers. We will work with you to understand your payment needs and offer specialised guidance on the best options available to you. Over the last 19 years we’ve helped over a million customers and last year alone processed over £12bn. We’re tried and trusted, and we’re ready to help you.

    Have a great day.

    International payments made simple
    Find out more

    Still have questions?

    This is some text inside of a div block.

    Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

    This is some text inside of a div block.

    Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

    This is some text inside of a div block.

    Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.