UPDATE
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within a limited range on Friday afternoon, whilst the Pound Sterling to US Dollar (GBP/USD) conversion rate softened by around -0.2%.
Now that the shock ECB rate decision has sunk in, the Euro is trending narrowly versus the Pound. Mixed results from domestic data had minimal impact on the single currency with traders taking profits following yesterday’s significant upsurge. The US Dollar, meanwhile, ticked higher versus its major peers after a positive Non-Farm Payrolls report solidified bets regarding a December Federal Reserve cash rate increase.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3875.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5110.
Yesterday…
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Edge Higher on Euro Profit Taking
The Pound Sterling to Euro (GBP/EUR) exchange rate ticked higher by around 0.4% on Friday morning.
With a lack of influential domestic data published today, the Pound has seen a mixed performance versus its currency rivals. The solitary domestic data publication did, however, produce a positive result despite having minimal impact on Sterling movement. November’s annual New Car Registrations advanced by 3.8% which was significantly better than the previous contraction of -1.1% in car registrations. Despite the absence of influential data, the Pound is holding a competitively strong position versus most of its rivals after yesterday’s services output data eclipsed expectations.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3910.
Having seen a huge upsurge yesterday, the common currency edged lower versus its rivals on Friday morning. This is the result of trader profit taking after the significant and unexpected Euro appreciation opened up some very attractive selling positions. Mixed results from domestic data has done little to prevent the single currency downtrend today. Whilst German Factory Orders declined by less-than-anticipated and the German Construction PMI advanced, Eurozone and German Retail PMIs both fell below the 50 mark which separates growth from contraction. It is worth mentioning that the single currency is still holding a competitively strong position versus its peers.
Pound Sterling to US Dollar (GBP/USD) Conversion Rate Predicted to Tick Lower on Euro Weakness
The Pound Sterling to US Dollar (GBP/USD) exchange rate edged lower by around -0.1% on Friday morning.
Ahead of US Non-Farm payrolls data, the US Dollar edged fractionally higher. The slight appreciation is the result of Euro weakness thanks to EUR/USD negative correlation. The forthcoming US data, which includes November’s Unemployment Rate, will be hugely significant. This is because the results are expected to have a marked impact on Federal Open Market Committee (FOMC) members as they decide on monetary policy outlook later this month. Positive results will likely send the US Dollar soaring after yesterday’s Euro upswing caused the Dollar to tank.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5113.
Pound Sterling Forecast: BoE Rate Decision to Remain Unchanged
There will be several influential domestic ecostats next week with the potential to provoke Sterling volatility. However, trader focus will likely be dominated by Thursday’s Bank of England (BoE) interest rate decision. The minutes from the interest rate meeting will also be of interest to see whether any additional policymakers dissented from Governor Mark Carney’s policy outlook. The last decision saw just one policymaker call for an immediate rate hike.
In addition to the BoE rate decision, there will be several influential domestic data publications. Industrial Production, Manufacturing Production, NIESR Gross Domestic Product Estimate, Visible Trade Balance, Total Trade Balance, Trade Balance Non EU and the BoE/GfK Inflation Outlook for the Next 12 Months all have the potential to provoke Sterling volatility next week.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within the range of 1.3808 to 1.3928 during Friday’s European session.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within the range of 1.5077 to 1.5156 today.
