{"id":101207,"date":"2020-06-16T12:14:35","date_gmt":"2020-06-16T16:14:35","guid":{"rendered":"https:\/\/currencylive.com\/news\/?p=101207"},"modified":"2020-06-16T12:14:35","modified_gmt":"2020-06-16T16:14:35","slug":"103427-gbp-eur-euro-slides-after-powell-says-fed-will-taper-corporate-bond-purchases","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/103427-gbp-eur-euro-slides-after-powell-says-fed-will-taper-corporate-bond-purchases\/","title":{"rendered":"GBP\/EUR: Euro slides after Powell says Fed will taper corporate bond purchases"},"content":{"rendered":"<p>The British pound is higher against the euro on Tuesday.<\/p>\n<ul>\n<li><strong>Fed Chair Jerome Powell testifies to Senate Banking committee<\/strong><\/li>\n<li><strong>German ZEW data shows investor confidence rising<\/strong><\/li>\n<li><strong>Record monthly US retail sales blow through expectations (+17.7%)<\/strong><\/li>\n<\/ul>\n<p>GBP\/EUR was higher by 56 pips (+0.50%) to 1.1184 as of 3pm GMT.<\/p>\n<p>The currency pair failed in another early move below 1.11 and eventually pushed up to above 1.12 before pulling back.<\/p>\n<h2>GBP: Pound rebounds as Fed increases stimulus<\/h2>\n<p>The general rebound in risk sentiment was responsible for the bulk of the gains in the pound on Tuesday with a dearth of UK economic or political developments since yesterday\u2019s EU\/UK high level talks.<\/p>\n<p>The main event of the day was Fed Chair Jerome Powell testifying to the Senate Banking Committee as part of his semi-annual Humphrey Hawkins testimony. We\u2019ve heard a lot from Powell in the last week so there wasn\u2019t too much room for surprise.<\/p>\n<p>The rebound across markets happened before his appearance when late yesterday the Fed announced it would start buying individual corporate bonds as part of its \u2018Secondary Market Corporate Credit Facility\u2019 (SMCCF). The program worth $250 billion was a key catalyst in stock markets bottoming when it was announced on March 23.<\/p>\n<h2>EUR: German ZEW expectations rise<\/h2>\n<p>More record economic data from the United States was another reason the pound gained over the euro, which tends to act as the main counterpoint to US dollar strength.<\/p>\n<p>US May advance retail sales gained +17.7% versus +8.4% expected. In April it was -16.4% (revised to -14.7%). The gains were exaggerated by a rebound in petrol prices but sales \u2018Ex autos and gas\u2019 were also +12.4% vs. +5.5% expected. \u2018Food services and drinking places\u2019 i.e. bars and restaurants were the standout sector losers, seeing bigger declines in May than April.<\/p>\n<p>In the Eurozone economic data was also implying a brighter outlook. The Germany ZEW current remains stubbornly planted at record low levels at -83.1 vs. -82.0 expected, but future expectations rose to +63.4 versus the +60.0 expected. ZEW commented that there is growing confidence that the economy will bottom out by the summer.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The British pound is higher against the euro on Tuesday. Fed Chair Jerome Powell testifies to Senate Banking committee German ZEW data shows investor confidence rising Record monthly US retail sales blow through expectations (+17.7%) GBP\/EUR was higher by 56 pips (+0.50%) to 1.1184 as of 3pm GMT. The currency pair failed in another early [&hellip;]<\/p>\n","protected":false},"author":163946608,"featured_media":5296,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1379],"tags":[1393,2410,2872,1391,2871],"class_list":["post-101207","post","type-post","status-publish","format-standard","has-post-thumbnail","category-eur","category-gbp","tag-euro","tag-gbp-eur","tag-germany-zew","tag-pound","tag-powell-testimony"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>GBP\/EUR: Euro slides after Powell says Fed will taper corporate bond purchases - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/103427-gbp-eur-euro-slides-after-powell-says-fed-will-taper-corporate-bond-purchases\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jasper Lawler\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/103427-gbp-eur-euro-slides-after-powell-says-fed-will-taper-corporate-bond-purchases\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/103427-gbp-eur-euro-slides-after-powell-says-fed-will-taper-corporate-bond-purchases\\\/\"},\"author\":{\"name\":\"Jasper Lawler\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/7cdd4328aaa82c6c13caee5961755200\"},\"headline\":\"GBP\\\/EUR: Euro slides after Powell says Fed will taper corporate bond purchases\",\"datePublished\":\"2020-06-16T16:14:35+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/103427-gbp-eur-euro-slides-after-powell-says-fed-will-taper-corporate-bond-purchases\\\/\"},\"wordCount\":356,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/103427-gbp-eur-euro-slides-after-powell-says-fed-will-taper-corporate-bond-purchases\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100864-gbp-eur-euro-data-in-focus.jpg\",\"keywords\":[\"euro\",\"gbp\\\/eur\",\"germany zew\",\"pound\",\"powell testimony\"],\"articleSection\":[\"EUR\",\"GBP\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2020\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/103427-gbp-eur-euro-slides-after-powell-says-fed-will-taper-corporate-bond-purchases\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/103427-gbp-eur-euro-slides-after-powell-says-fed-will-taper-corporate-bond-purchases\\\/\",\"name\":\"GBP\\\/EUR: Euro slides after Powell says Fed will taper corporate bond purchases - 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