UPDATE
The Pound Sterling to Euro (GBP/EUR) exchange rate advanced by around 0.2% on Friday afternoon, whilst the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within a tight range.
In response to better-than-expected British economic data, the Pound strengthened versus many of its currency rivals. BBA Loans for House Purchase bettered expectations of a rise from 42876 to 43300, with June’s actual result reaching 44488.
The Euro, meanwhile, softened versus is major peers in response to less-than-ideal results from domestic data publications. German, French and Eurozone Manufacturing, Services and Composite PMIs all failed to meet with the respective median market forecasts.
The Us asset fluctuated during Friday’s European session. An initial uptrend, as the results of better0than-expected Manufacturing output, was reversed after June’s New Home Sales declined well beyond expectations.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4142.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5515.
Yesterday…
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Dive after Greek MPs Accept Bailout Terms
The Pound Sterling to Euro (GBP/EUR) exchange rate softened by around -1.0% on Thursday afternoon.
British economic data produced disappointing results during Thursday’s European session, causing the Pound to plummet versus its major peers. On the month, June’s Retail Sales declined by -0.2% despite predictions of a 0.4% increase. On the year, June’s Retail Sales including Auto Fuel came in at 4.0% growth; failing to meet with the median market forecast 4.8%. In addition, Retail Sales including Auto Fuel declined by -0.2% on the month in June; missing the market consensus of a 0.4% sales growth.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4149.
The common currency, meanwhile, advanced versus its currency competitors after Greek MPs voted to accept a second package of reforms in order to unlock financial aid. Whilst many Syriza MPs voted against the terms, the bill was passed thanks to the opposition vote. Prime Minister Alexis Tsipras has openly criticised the deal, but stated that he will do everything in his power to sweeten the deal when it comes to final negotiations.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within the range of 1.4133 to 1.4304 during Thursday’s European session.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Edge Lower ahead of US Jobs Data
The Pound Sterling to US Dollar (GBP/USD) exchange rate ticked lower by around -0.5% on Thursday afternoon..
In response to the British retail sales figures, the Office for National Statistics (ONS) stated; ‘Average store prices (including petrol stations) fell by 2.9% in June 2015 compared with June 2014. This is the 12th consecutive month of year-on-year price falls with all store types reporting decreases. The largest contribution came once again from petrol stations which fell by 10.0%, the 22nd consecutive month of year-on-year falling prices in this store type. In June 2015, the amount spent in the retail industry increased by 0.9% compared with June 2014, but decreased by 0.1% compared with May 2015. Non-seasonally adjusted data show that the average weekly spend in the retail industry was £7.1 billion, unchanged from the previous month and the June 2014 figure.’
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5537.
With dampened demand for safe-haven assets, after Greek MPs accepted bailout conditions, the US Dollar softened versus many of its currency rivals. The depreciation was short-lived, however, thanks to better-than-expected US jobs data. Continuing Claims, Initial Jobless Claims, Chicago Fed Nat Activity Index and Leading Indicators all bettered the respective median market forecast figures. The positive domestic data results stoked bets that the Federal Open Market Committee (FOMC) will look to increase the cash rate with the next few policy meetings.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within the range of 1.5514 to 1.5671 during Thursday’s European session.
