The Pound Sterling to Euro (GBP/EUR) exchange rate was trending lower in the first half of Friday’s European trading, while the Pound Sterling to Swiss Franc (GBP/CHF) and Pound Sterling to Canadian Dollar (GBP/CAD) exchange rates remained in a narrow range.
Pound Sterling to Euro (GBP/EUR), Swiss Franc (GBP/CHF) and Canadian Dollar (GBP/CAD) Exchange Rates Trending Lower after UK Consumer Confidence Slip
The Pound took a dive after the UK’s GfK Consumer Confidence Survey slipped from 4 to 1 in May rather than stagnating as forecast.
GfK representative Nick Moon commented: ‘In the short term, this suggests that despite rewarding them with a majority in the House of Commons, the public are not too confident about economic life under the Conservatives.’
Pound Sterling to Euro (GBP/EUR) Exchange Rate Sensitive as Greek Negotiations Continue following IMF Warning
Meanwhile, the Euro has put in a mixed performance on Friday as investors digest statements from the International Monetary Fund (IMF) amid ongoing Greek negotiations. The IMF suggested that a deal was unlikely to be forged in the next few days, despite Greece’s perhaps overenthusiastic optimism.
IMF chief Christine Lagarde commented: ‘It’s very unlikely that we will reach a comprehensive solution in the next few days.’
Pound Sterling to Swiss Franc (GBP/CHF) in Narrow Range after Swiss GDP Contracts
The Swiss Franc softened against a host of other majors on Friday after the Swiss economy contracted more-than-forecast in the first quarter. The Swiss Gross Domestic product (GDP) ecostat took a tumble from 1.9%, past the 1.6% prediction, to reside at 1.1%.
The contraction in growth is accredited to the strong Swiss Franc, which has risen substantially since the Swiss National Bank (SNB) removed the EUR/CHF cap.
Economist Daniel Hartmann commented: ‘The GDP result for the first quarter is important for gauging if the Franc appreciation has left a mark. We can’t really expect the second quarter to be much better.’
However, the Franc’s been relatively buoyant as investors seek safe-haven assets amid the uncertain Greek situation.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast for Canadian GDP Data Movement
Meanwhile, the Canadian Dollar could be in for an interesting day of movement with its own highly influential Canadian Gross Domestic Product figures released. The Canadian economy is expected to stagnate at 2.1% on the year in March, while the monthly figure is forecast to register 0.2% growth.
The Bank of Canada (BOC) opted to keep interest rates on hold at 0.75% this week, but the dovish tone of policymakers pressured the ‘Loonie’ lower. The BOC suggested they were concerned that a strong Canadian Dollar exchange rate could be damaging to the economy.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is trading at 1.9045. The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is trending at 1.4440. The Pound Sterling to Euro (GBP/EUR) exchange rate is trending in the region of 1.3961.
