The Pound Sterling to Euro (GBP/EUR) and Pound Sterling to Canadian Dollar (GBP/CAD) exchange rates were both trending higher on Tuesday as oil fell and investors awaited German Unemployment stats, while the Pound Sterling to US Dollar (GBP/USD) exchange rate continued to trade lower.
Earlier… The Pound Sterling to Euro (GBP/EUR) and Pound Sterling to Canadian Dollar (GBP/CAD) exchange rates began the North American session lower, while the Pound Sterling to US Dollar (GBP/USD) exchange rate began Wall Street’s trading lower after US data beat forecasts.
US Personal Consumption Expenditure rose to 1.4% on the year in February rather than stagnating at 1.3%.
Earlier… The Pound Sterling to Euro (GBP/EUR) exchange rate began Monday’s session trending higher, while the Pound Sterling to US Dollar (GBP/USD) and Pound Sterling to Canadian Dollar (GBP/CAD) exchange rates were trading lower.
Euro (EUR/GBP) Exchange Rate Forecast to Fluctuate on German Inflation
The Euro exchange rate could be in for major fluctuations on Monday with the release of German Consumer Price Index (CPI) and Eurozone confidence figures.
Inflation within the currency bloc’s largest and most influential nation is expected to rise from 0.1% to 0.3% on the year in March and could be a development that boosts the Euro exchange rate significantly.
However, negotiations between Greece and its creditors are ongoing as the nation attempts to gain a better bailout deal.
Greece’s deputy finance minister Dimitris Mardas commented: ‘The government has not abandoned any claim regarding its aim to make the country’s debt viable… either there will be a haircut or it will be extended, or… linked to an increase in output or exports, or there will be a lower interest rate.’
Friday’s US Dollar Rate Hike Strength (USD/GBP) Lingers in Monday’s Trading
Meanwhile, the US Dollar to Pound Sterling (USD/GBP) exchange rate could take a dramatic swing later in the session after the release of US Personal Consumption Expenditure figures. The ecostat is expected to remain at 1.3% in February on the year.
UPDATE: The US personal spending ecostat came in at 1.4% on the year in February, beating economists’ forecasts.
Additionally, US Pending Home Sales will also be out in Monday’s session while the US Dallas Fed Manufacturing Activity will also emerge.
The US Dollar rallied in Friday’s American session when Federal Reserve Chairwoman Janet Yellen announced that she envisaged Fed interest rate hikes beginning this year.
Yellen stated: ‘With continued improvement in economic conditions, an increase in the target range for that rate may well be warranted later this year.’
Meanwhile, the Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate is likely to fluctuate on oil prices on Monday with only the Canadian Industrial Product Price and Raw Materials Price Index out for release.
The price of WTI oil has tumbled by -0.72 so far in Monday’s session, falling to $48 per barrel. The price of oil could continue to decline as demand remains weak and the prospect of a deal with Iran could further increase the global glut.
ANZ Bank stated: ‘Any relaxation of Iran and oil sanctions could see increased exports adding to swelling global supplies and further pressuring prices.’
Pound Sterling Exchange Rate Forecast: GBP/EUR, GBP/USD, GBP/CAD
The Pound Sterling exchange rate could climb against other majors after Monday’s UK Mortgage Approvals rose by more than economists had forecast. The February ecostat hit 61.8K after January’s positively revised 60.7K, beating forecasts of 61.1K.
Furthermore, Mortgage Lending reached £1.7B in February rather than the £1.6B forecast and Net Lending to Individuals hit £2.5B after January’s £2.4B.
Bank of England (BoE) Consumer Credit came in at £740M rather than the £976M predicted.
Eurozone Industrial, Services, Economic and Consumer Confidence figures are still to come and could impact the Euro to Pound Sterling (EUR/GBP) exchange rates.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate resides at 1.8674. The Pound Sterling to US Dollar (GBP/USD) exchange rate is trading at 1.4827; the Pound Sterling to Euro (GBP/EUR) exchange rate is trending in the region of 1.3643.