UPDATE
The Pound Sterling to Euro (GBP/EUR) exchange rate ticked higher by around 0.1% on Wednesday morning, whilst the Pound Sterling to US Dollar (GBP/USD) was trending within a tight range.
The British Pound continues a steady uptrend versus most of its currency rivals on Wednesday after growth data met with estimates on Tuesday. As traders await Mortgage Approvals data, the Pound is likely to hold steady versus its currency peers.
The Euro, meanwhile, softened versus its major competitors as traders await news from the talks between Greece and its creditors. Whilst most feel that the threat of a Grexit is now over, there is still much negotiating to be done. In its current form, most analysts fear that Greece cannot sustain an economic recovery under the terms of the latest reforms. German Consumer Confidence met with estimates which prevented a larger Euro depreciation.
As Federal Open Market Committee (FOMC) members gather for a second day to decide on monetary policy outlook, the US Dollar edged higher. Although policymakers are very unlikely to hike the cash rate at this juncture, the accompanying statements from Fed officials may reveal clues as to the timing of a liftoff.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4125.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5596.
Yesterday…
The Pound Sterling to Euro (GBP/EUR) exchange rate advanced by around 0.7% on Tuesday afternoon, whilst the Pound Sterling to US Dollar (GBP/USD) exchange rate gained by around 0.3%.
After British growth data met with estimates, the Pound advanced versus the majority of its most traded currency rivals. The appreciation was somewhat sluggish, however, thanks to the headline figure masking shrinking manufacturing output. The UK’s reliance upon its services sector is concerning for many economists and shows that the government has a long way to go to implement its ‘march of the makers,’ policy.
The Euro, meanwhile, softened versus its currency competitors after traders feared Monday’s surge was unjustified. Given that there is still a long way to go before Greece unlocks financial aid, the common currency could remain bearish for some time to come.
The US Dollar softened versus many of its currency rivals as traders speculated that the Federal Reserve would delay a benchmark interest rate hike in the face of troubles in China’s equity markets. Additional losses can be attributed to disappointing domestic data which showed Consumer Confidence dived despite predictions of a fractional increase.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4121.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5608.
Previously…
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Advance after UK GDP Hits Estimates
The Pound Sterling to Euro (GBP/EUR) exchange rate strengthened by around 0.4% on Tuesday morning.
British growth data fell in line with economists’ forecasts on Tuesday morning which saw the Pound advance versus its major rivals. On the year, second-quarter Gross Domestic Product came in at 2.6% growth. On a quarterly basis, British GDP saw accelerated growth of 0.7% in the second-quarter. This is likely to add to pressure on the Monetary Policy Committee (MPC) to consider a 2015 benchmark rate hike.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4072.
After the common currency surged on Monday in response to easing concerns regarding Greece’s geopolitical turmoil, fears that the appreciation was overdone has seen the single currency soften on Tuesday. Although it looks increasingly likely that the Hellenic nation will receive bailout funds, there is the very real prospect of several more weeks of negotiations and uncertainties which could hinder investor confidence.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within the range of 1.4019 to 1.4087 during Tuesday’s European session.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Edge Higher ahead of US Consumer Confidence
The Pound Sterling to US Dollar (GBP/USD) exchange rate edged higher by around 0.1% on Tuesday morning.
Of the British second-quarter growth data, the Office for National Statistics said; ‘The 0.7% increase in GDP growth in Quarter 2 (Apr to June) 2015 implies that GDP per head would be broadly equal to the pre-economic downturn peak in Quarter 1 (Jan to Mar) 2008.’ The 10th consecutive quarter of UK growth will be seen by some as justification for backing the government’s actions to reduce the budget deficit and promote economic growth.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5579.
The US Dollar is holding relatively steady versus its major peers on Tuesday morning. The static trading can be linked to traders awaiting results from Consumer Confidence data due for publication later on Tuesday afternoon. Although Monday’s positive data results had minimal impact on US Dollar movement, a second consecutive day of encouraging results is likely to initiate a ‘Greenback’ (USD) surge. Fears that the slowdown in the Chinese stock market will weigh on Federal Open Market Committee (FOMC) rate decisions have also stymied US Dollar gains.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within the range of 1.5526 to 1.5587 during Tuesday’s European session.