UPDATE
The Pound Sterling to Euro (GBP/EUR) exchange rate and the Pound Sterling to US Dollar (GBP/USD) exchange rate were trending within a tight range on Thursday morning.
As traders await news from the EU summit, in which Prime Minister David Cameron will be attempting to persuade member states to back his program of reforms, the Pound is trending narrowly versus its major peers. A slight lean towards appreciation can be linked to recent opinion polls which suggest the UK will vote to remain a part of the European Union.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.2830.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.4288.
Yesterday…
Pound Sterling to Euro (GBP/EUR) Conversion Rate Forecast to Trend Narrowly after Mixed UK Labour Data
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within a limited range on Wednesday morning.
British economic data produced a mixed-bag of results today, but subdued market trade has seen minimal impact from ecostats thus far. January’s Claimant Count Rate, Jobless Claims Change and December’s Weekly Earnings ex Bonus all bettered the respective median market projections. However, December’s Employment Change, Unemployment Rate and Average Weekly Earnings all failed to stimulate confidence in the UK’s economic outlook.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.2832.
Despite trader risk-aversion strategies and demand for financer assets, the Euro has failed to rack up any notable gains. Once again this is mostly the result of subdued market trade, but is also a response to less-than-ideal domestic data. December’s Eurozone Construction Output unexpectedly contracted by -0.4% on the year. Additionally, the monthly reading for December’s Eurozone Construction Output unexpectedly contracted by -0.6%.
Pound Sterling to US Dollar (GBP/USD) Conversion Rate Predicted to Trend within a Tight Range ahead of US Industrial/Manufacturing Output Data
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within a close range on Wednesday morning.
Commenting on the British labour market data, Nick Palmer, ONS Statistician, stated; ‘While the employment rate continues to hit new highs and there are more job vacancies that ever previously recorded, earnings growth remains subdued and markedly below the recent peak of mid-2015.’
Meanwhile, James Smith at ING Bank stated; ‘With wage pressures remaining fairly subdued (at least for now) and headline inflation likely to remain low in the near-term, the Bank of England has room to leave rates unchanged until the Brexit uncertainty subsides. However, if the UK votes to remain in the EU, we think there is a strong chance of a November rate hike given that consumer spending remains strong and a weaker sterling is likely to help push up inflation in the medium-term.’
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.4313.
As traders await US ecostats the Dollar is trending narrowly versus a number of peers. A slight lean towards appreciation can be linked to safe-haven demand. However, US Dollar gains are predicted to be limited with uncertainty surrounding Federal Reserve policy outlook weighing on investor confidence. Some analysts are going as far as to say that the Federal Reserve will adopt negative interest rates to combat recession. Later today, US Manufacturing Production and Industrial Production reports will be likely to provoke volatility.
Pound Sterling (GBP) Exchange Rate Forecast: EU Summit in Focus
Despite a complete absence of domestic data to provoke volatility tomorrow, the British Pound is likely to see significant volatility. This is because Prime Minister David Cameron is due to present a list of reforms at an EU summit in the hope of persuading EU member states to agree to changing the UK’s relationship with the EU. EU referendum uncertainty has caused significant GBP depreciation lately so any clues as to how things will pan out will be welcomed by investors.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within the range of 1.2737 to 1.2887.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within the range of 1.4243 to 1.4339 during Wednesday’s European session.
