Sterling Holds Decline against Euro, Consolidates Gain against US Dollar
The Pound Sterling to Euro (GBP/EUR) exchange rate may have tumbled in response to a slightly dovish Inflation Report from the Bank of England (BoE), but the Pound Sterling to US Dollar’s (GBP/USD) bullish run continued.
With US retail sales data falling short of the mark, the GBP/USD currency pair advanced to a high of 1.5789.
If today’s US initial jobless/continuing claims numbers fail to impress, we may even see ‘Cable’ hit 1.58 in the hours ahead.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3822
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trading in the region of 1.5778
Earlier…
GBP/EUR Falls 0.6%, GBP/USD Exchange Rate Holds Gain after Retail Sales Report
While the Pound Sterling to Euro (GBP/EUR) exchange rate fell back to trending below 1.38 after the Bank of England’s (BoE) inflation report contained negatively revised growth forecasts, the Pound Sterling to US Dollar (GBP/USD) exchange rate was able to hold above 1.57 after the release of disappointing US retail sales data.
The US Advance Retail Sales report showed stagnation in April rather than the 0.2% gain expected.
Sales less autos rose 0.1%, well short of the 0.5% advance predicted.
Although the figures for March were positively revised, the US Dollar softened after the figures were published.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3880
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5702
Earlier…
UK Unemployment Falls to 5.5% – GBP/EUR and GBP/USD Exchange Rates Gain
The Pound posted broad-based gains ahead of the release of the hotly-anticipated Bank of England (BoE) Inflation Report as investors responded to positive UK employment data.
The UK might not have added quite as many positions in the three months through March as economists expected, but the over 200,000 gain was still enough to drive the UK unemployment rate from 5.6% to 5.5%.
This result, coupled with an increase in average earnings, helped Sterling advance on both the Euro and US Dollar. A hawkish BoE report would see the Pound consolidate and extend these gains.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.4004
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trading in the region of 1.5734
Earlier…
Newsflash: GBP/EUR Back Above 1.39, GBP/USD Hits High of 1.5693
As the European session progressed the Pound continued to trim losses against the Euro and extended its daily gain against the US Dollar.
Markit economist Chris Williamson stated that the data would be ‘widely seen as upping the odds of interest rates rising later this year’ but also cautioned that; ‘The overall picture in fact remains one of a manufacturing economy that is struggling to expand in the face of the stronger Pound and heightened business uncertainty. The near-stagnation of the sector over the first quarter is a reminder of how little progress the UK has made in terms of rebalancing towards manufacturing and will probably do little to persuade the Bank of England that the economy is ready for higher interest rates.’
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trading in the region of 1.3915
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trading in the region of 1.5681
Earlier…
After the UK’s Industrial and Manufacturing Production figures exceeded forecasts, the Pound Sterling to Euro (GBP/EUR) exchange rate recovered earlier losses while the Pound Sterling to US Dollar (GBP/USD) exchange rate bounced back to a multi-month high of 1.56.
GBP/EUR, GBP/USD Exchange Rate News – Pound Softer after EU Referendum Brought Forward, Supported by UK Data
On Monday the Pound Sterling to Euro (GBP/EUR) exchange rate advanced to 1.40 on the threat of a Greek default while the Pound Sterling to US Dollar (GBP/USD) exchange rate rallied to its strongest level of 2015 as a result of hopes that the Bank of England (BoE) will adopt a hawkish tone in this week’s inflation report.
However, as it was hinted that the newly elected Conservative government could bring forward the promised in-out EU referendum from 2017 to 2016, the Pound shed gains against several of its rivals.
The Pound Sterling to Euro (GBP/EUR) exchange rate hit a low of 1.3833
The GBP/EUR pairing returned to trending at the 1.38 level while the GBP/USD exchange rate drifted back to 1.55.
Sterling was able to stage something of a rebound on Tuesday however as the UK’s Industrial/Manufacturing Production figures impressed.
The Pound Sterling to US Dollar (GBP/USD) exchange rate hit a high of 1.5657
Industrial production had been expected to stagnate on the month in March and increase by just 0.1% on the year, but it actually posted respective gains of 0.5% and 0.7%.
Similarly, manufacturing production rose by 0.4% on the month in March, defying forecasts for a smaller increase of 0.3%, and was up 1.1% on the year.
The increase in industrial production was the most substantial for six months.
As stated by industry expert Jon Sindreu; ‘An improvement in Britain’s industrial sector, which added to the recovery in 2014, is a sign the UK economy will remain healthy into 2015. Previous official data believed factories were a drag for economic growth during the first quarter, but Tuesday’s figures showed they actually made a small positive contribution to gross domestic product.’
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast – Greece Pays IMF but Financial Situation Now Desperate, Grexit Ahead?
On Monday the Pound Sterling to Euro (GBP/EUR) exchange rate declined as Greece took investors by surprise and paid the International Monetary Fund (IMF) its debt repayment instalment of 750 million Euros early.
Fears that the nation would default on the payment had previously kept the Euro under pressure, so the common currency was able to edge higher against both the US Dollar and Pound on the development.
However, gains were limited as Greek Finance Minister Yanis Varoufakis warned that the fiscal situation in the Hellenic nation is now ‘terribly urgent’.
Varoufakis commented; ‘The liquidity issue is a terribly urgent issue. It’s common knowledge, let’s not beat around the bush. From [a timing] perspective we are talking about the next couple of weeks.’
Greece must reach an accord with its creditors and safeguard its place in the Eurozone if the Euro is ever going to enjoy a sustained advance against the Pound.
Pound Sterling to US Dollar (GBP/USD) Trending at Best Exchange Rate of 2015, Movement Forecast to Follow Retail Sales Data
Hopes that the Bank of England will adopt a moderately hawkish attitude with regards to the future outlook of aspects of the UK economy (notably growth and inflation) helped the GBP/USD exchange rate advance beyond 1.56 on Monday.
Although the pairing later dipped, it returned to trending around this level following the release of the UK industrial/manufacturing production data.
Today’s US Monthly Budget Statement, JOLTs Jobs Openings number and NFIB Small Business Optimism figure could have an impact on GBP/USD trading, but investors are more likely to be looking ahead to tomorrow and the publication of the US Advance Retail Sales figure.
Economists are envisaging a sales gain of 0.2%, a pretty poor consumer spending number which wouldn’t lend the ‘Greenback’ much support.
However, if retail sales actually rallied by more than this, ‘Cable’ could come away from recent highs.
Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast: Slowing UK GDP Could See Sterling Soften before Employment Data, BoE Inflation Report
In the hours ahead both the Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates could experience additional movement as the National Institute of Economic and Social Research (NIESR) publishes its UK GDP estimate for April.
A marked slowing in the pace of UK expansion would be Pound-negative and could undermine demand for the British asset prior to the publication of this week’s most influential UK ecostats – the nation’s latest employment figures and the Bank of England’s (BoE) inflation report.
The Euro to Pound Sterling (EUR/GBP) exchange rate was trading in the region of 0.7192, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5652, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trading in the region of 0.6390, the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3900