UPDATE
On Monday afternoon the Pound Sterling to Euro (GBP/EUR) and US Dollar (GBP/USD) exchange rates were trending within a limited range. The shared currency recovered early losses today thanks to ECB officials questioning the viability of further policy easing. The US Dollar, meanwhile, held steady after manufacturing output weakened by remained above contraction territory.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3994.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5430.
Earlier…
Pound Sterling to Euro (GBP/EUR) Conversion Rate Predicted to Advance after French Manufacturing Output Slips
The Pound Sterling to Euro (GBP/EUR) exchange rate ticked higher by around 0.2% on Monday morning.
In response to better-than-expected domestic data, the Pound rallied versus its major peers. October’s seasonally-adjusted Markit UK Manufacturing PMI outstripped estimates considerably with the actual result hitting 55.5; eclipsing the median market forecast drop from 51.5 to 51.3. Given that recent slow manufacturing output has been a significant drag on British growth, the latest results will buoy rate hawks hoping for a sooner-than-anticipated benchmark interest rate hike. However, Bank of England (BoE) policymakers will likely be looking for consistency in all of the UK’s major sectors before considering tighter policy.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4043.
Although European economic data produced mostly positive results, the common currency has seen comparatively subdued trade thus far on Monday. Lack of volatility is mostly the result of trader uncertainty regarding the timing of a Federal Reserve interest rate hike. Italian, German and Eurozone Manufacturing output all bettered estimates, but the French Manufacturing PMI dropped below expectations; hitting 50.6 in October which is very close to the 50 mark that separates growth from contraction.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Strengthen ahead of US ISM Manufacturing
The Pound Sterling to US Dollar (GBP/USD) exchange rate edged higher by around 0.3% on Monday morning.
In response to the better-than-expected British manufacturing print, Rob Dobson, Senior Economist at survey compilers Markit stated; ‘The start of the final quarter saw UK manufacturing spring back into life and record its best month of factory output growth since June 2014. The revival provides a tentative suggestion that the manufacturers are pulling out of their recent funk, having been dogged by recession since the start of the year, and may help boost economic growth in the fourth quarter. Based on historical comparisons, the survey is consistent with a quarterly rate of growth of around 1%, a vast improvement on what we have seen in recent months. The big question now is whether this bounce back is a one-off or the start of a sustained re-emergence from recession.’
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5466.
With so much uncertainty mounting with regards to the timing of a Fed interest rate hike, the US Dollar has seen quiet trade on Monday morning. Optimism following a hawkish statement from the Federal Open Market Committee (FOMC) was short-lived after a number of domestic data results, including Gross Domestic Product, failed to support hopes of a December lift-off. Later today, US ISM Manufacturing is likely to have a significant impact on ‘Greenback’ USD) movement. A drop below 50 would indicate manufacturing contraction in the US which would have significant ramifications for rate hike bets.
Pound Sterling (GBP) Exchange Rate Forecast: ‘Super Thursday’ to Dominate Trader Focus
This week will see ‘Super Thursday’ which is a term used to describe a plethora of simultaneous publications from the Bank of England (BoE). Not only will the Monetary Policy Committee (MPC) make their interest rate decision, but the accompanying meeting minutes will be released immediately. What’s more is the publication of the central bank’s inflation report. Whilst most traders don’t forecast any changes from the BoE at this time, the minutes and inflation report will be very likely to spark Sterling volatility.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within the range of 1.3957 to 1.4070.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within the range of 1.5420 to 1.5497 during Monday’s European session.
