Pound and Euro Holding Steady ahead of European Union Summit, US Dollar Static ahead of Jobs Data

Published: 25 Jun at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, USA, Germany, Greece,

Pound Sterling (GBP)\r\nHaving edged lower on Wednesday after BBA Loans for House Purchase saw May’s mortgage approvals come in below forecast, the Pound is generally holding steady versus its peers on Thursday. Traders are showing a reluctance to invest in the Pound ahead of today’s European Union meeting in Brussels. British Prime Minister David Cameron is preparing to submit a proposal for altering the relationship between the UK and the European Union so as to offer UK citizens a better choice in the forthcoming EU referendum. Should EU officials reject the proposal, the Pound is likely to plummet as it would bolster the arguments presented by Euro-sceptics. \r\n\r\nThe solitary British economic data publication has the potential to provoke changes for the Pound. CBI Reported Sales is forecast to decline from 51 to 35 in June. \r\n\r\nEuro (EUR) \r\nAfter Wednesday’s emergency meetings between Greek and Eurozone officials failed to resolve the issues preventing Greece from unlocking vital bailout funds from creditors, the single currency softened versus its peers. The common currency avoided a larger declination, however, thanks to speculation that the Hellenic nation will have no choice but to accept creditors’ demands lest they find themselves estranged from the Eurozone. \r\nThe EU meeting later today is likely to feature Greece heavily. Should talks progress towards safe-guarding against a Greek exit rather than cementing the Hellenic nation’s position as a member of the Eurozone, the single currency is likely to dive versus it competitors. \r\n\r\nAiding the Euro depreciation on Thursday was disappointing data out of the currency bloc’s most powerful nation. German Consumer Confidence came in at 10.1 in July, missing the median market forecast of 10.2. \r\n\r\nUS Dollar (USD) \r\nThe European Union Finance Ministers summit will also impact upon the US asset. Should Greece fail to secure aid, trader risk-aversion will see safe-haven demand soar. Given recent meetings and the past 5-months of negotiations, reaching a deal is not looking particularly likely. \r\n\r\nUS labour market data, due for publication later on Thursday, will be of significance to those invested in the ‘Greenback’ (USD). After Federal Reserve Governor Jerome Powell speculated that the Federal Open Market Committee (FOMC) will increase the cash rate twice in 2015. Should labour market data produce positive results, Fed policymakers will come under significant pressure to act within the next few meetings.
As of Thursday, 25th June 2015, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.406, GBP USD exchange rate was 1.5749,

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