- Sterling up against Euro and US Dollar
- Euro softens on scattering of disappointing Eurozone data
- US Dollar steady after positive outcome for housing stats
- Forecast: UK GDP ahead
GBP Prepares to Close Week Close to Best Rates Vs EUR, USD
The Pound Sterling to Euro and Pound Sterling to US Dollar exchange rates both advanced by more than 0.4% during the European session on Friday, taking the pairings close to their highest points of the week.
While UK data is fairly thin on the ground next week, the UK’s first quarter GDP report could prompt some volatility.
Signs of slowing growth are likely to weigh on the British asset, potentially causing the Pound to shed some of the gains accrued over the course of this week.
Pound to Euro, US Dollar Exchange Rates Firm Today
Both the Pound to Euro (GBP/EUR) and Pound to US Dollar (GBP/USD) exchange rates climbed on Thursday.
Although the UK’s data fell short of forecast, the Pound proved surprisingly resilient and climbed to a high of 1.2731 against the Euro and 1.4440 against the US Dollar.
As there are no further British reports to focus on before the weekend, global economic developments and news from the US and Eurozone will be driving GBP to EUR, USD exchange rate movement.
The Pound (GBP) has been weak against a majority of its peers today, owing to lacklustre data releases from the UK.
The Euro (EUR) has been softened to a lesser extent against the competition, owing to an impending series of high-impact announcements.
The US Dollar (USD) has been the strongest of the three currencies, having been boosted by yesterday’s housing data.
UK Economic News: Chancellor Misses Borrowing Target, Sterling Flops
The Pound (GBP) has lost out against a majority of its peers today, having been damaged by the earlier missed government borrowing target and a slight drop off in retail sales compared to previous printings.
Borrowing exceeded government targets by £1.8 billion; the first time that Chancellor George Osborne has bitten off more than he can chew when it comes to fiscal predictions.
Notable Sterling losses have included a slight decline against the Euro (GBP/EUR), -0.3% against the US Dollar (GBP/USD) and -0.5% against the Swedish Krona (GBP/SEK).
Euro (EUR) Soft while US Dollar (USD) Expands Gains on Peers
The single currency (EUR) has generally been a poor prospect today, having fallen against its peers or trended in a tight range. These losses have primarily stemmed from already unsettling Eurozone announcements, which have included a continued trade deficit for Spain and a stagnation of French consumer confidence in April against forecasts of an increase.
Euro movements of note have included -0.3% against the Australian Dollar (EUR/AUD) and the Japanese Yen (EUR/JPY) and a smaller decline against the US Dollar (EUR/USD). Against the Pound Sterling (EUR/GBP), a minor gains has been recorded.
The US Dollar (USD) has been more stable against its rivals today, having recorded advances of 0.4% against the South African Rand (USD/ZAR) and 0.5% against the Polish Zloty (USD/PLN). The ‘Buck’ has recorded minor gains on both the Euro (USD/EUR) and the Pound Sterling (USD/GBP).
These gains may have been partly influenced by yesterday’s existing home sales results, which showed a significant increase from -7.1% to 5.1% for March.
Future GBP, EUR, USD Forecast: ECB Decisions and US Claims Stats Ahead
The near-future for the three currencies is set to mainly see movement from the Eurozone, as the European Central Bank (ECB) interest rate decision, along with other policy choices, is due in the early afternoon.
Current forecasts are for an interest rate freeze from the ECB, therefore the real point of interest may be ECB President Mario Draghi’s scheduled speech that is due shortly after the central bank’s announcements.
The US ecostats will first arrive in the early afternoon, in the form of the initial jobless and continuing claims results for mid-April. Present predictions are for a damaging rise in both fields.
Closing off the day will be another Eurozone release, which will be the consumer confidence score for April. Present expectations are for a slight improvement from -9.7 to -9.3.
Current GBP, EUR, USD Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.2676, while the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7891.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.4314, and the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6988.
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1294 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.8859 today.