UPDATE
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within a tight range on Tuesday morning, as was the Pound Sterling to US Dollar (GBP/USD) exchange rate.
As traders await British second-quarter Gross Domestic Product data, the Pound is generally holding steady versus its major peers. A positive result will pressure Bank of England (BoE) policymakers into hiking the cash rate ahead of 2016.
The Euro, meanwhile, softened versus its major peers after Monday’s upsurge. The appreciation, which was the result of easing tensions regarding Greece, was seen as overdone as negotiations between Greek officials and creditors still have a long way to go.
The US Dollar is holding relatively steady versus its major rivals despite registering better-than-expected durable goods orders. The lack of US Dollar volatility could be the result of speculation that the slowdown in China may impact upon Federal Open Market Committee (FOMC) rate decisions.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4045.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5545.
Yesterday…
The Pound Sterling to Euro (BP/EUR) exchange rate declined by around -0.7% on Monday afternoon, whilst the Pound Sterling to US Dollar (GBP/USD) exchange rate advanced by around 0.5%.
The British Pound softened versus most of its currency rivals on Monday afternoon after Bank of England (BoE) Chief Economist Andrew Haldane stated that the London-based central bank was in no rush to hike the benchmark interest rate. Haldane warned that the British labour market has not yet recovered from the financial crash and that a rate hike could be tricky for families to deal with.
The shared currency advanced versus the majority of its most traded currency rivals amid optimism that the troika of creditors will give Greece financial aid well before the next payment to the European Central Bank (ECB) is due. Additional Euro gains can be attributed to ECB Executive Board Member Benoit Coeure who sated that whether or not to address Greek debt relief was no longer a subject for debate, but rather the debate has now moved to how best to implement debt restructuring.
Despite the fact that US Durable Goods Orders produced a better-than-expected result, having advanced by 3.4% in June, the US Dollar declined versus many of its currency rivals. This is mostly due to traders hedging bets ahead of Wednesday’s Federal Open Market Committee (FOMC) interest rate decision. The Federal Reserve will welcome US Dollar devaluation in the face of positive ecostats.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4015.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5592.
Earlier…
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Dive ahead of ‘Troika’ Meeting
The Pound Sterling to Euro (GBP/EUR) exchange rate softened by around -1.0% on Monday morning.
The British Pound edged lower versus most of its currency rivals on Monday morning in response to expectations that CBI Trends data, due for publication later on Monday morning, is likely to print comparatively poorly. The UK asset is also unlikely to see any significant gains ahead of Tuesday’s Gross Domestic Product reading. A positive result could help pressure the Bank of England (BoE) Monetary Policy Committee (MPC) into hiking the benchmark interest rate within 2015.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3988.
As the ‘Troika’ of creditors responsible for providing financial aid to Greece prepare to meet today to discuss Greece’s third bailout, the shared currency rallied versus its major peers. The appreciation can be linked to speculation that creditors will grant Greece financial aid ahead of August 20th, when a payment to the European Central Bank (ECB) is due.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within the range of 1.3968 to 1.4145 during Monday’s European session.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Trend within a Limited Range ahead of Durable Goods Orders Data
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within a narrow range on Monday morning.
With mixed forecasts for the second-quarter British growth data due on Tuesday, traders are showing reluctance to invest heavily ahead of the results. On a quarterly basis, Gross Domestic Product is expected to advance by 0.7% compared with the 0.4% growth registered in the previous quarter. On an annual basis, however, GDP is expected to advance by 2.6% which is lower than the 2.9% registered in the second-quarter of last year.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5515.
The US asset was trading statically versus most of its currency rivals on Monday morning. This is partly the result of improved market sentiment as the easing situation in Greece sees dampened demand for safe-haven assets. In addition, there is reluctance among traders to invest in the ‘Greenback’ (USD) ahead of the Durable Goods Orders data, which may have a significant impact on the Federal Open Market Committee’s (FOMC) outlook.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within the range of 1.5488 to 1.5545 during Friday’s European session.