Pound Sterling to Euro (GBP/EUR) Conversion Rate Predicted to Advance despite Absence of UK Data
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within a narrow range on Friday afternoon.
With a complete absence of domestic data to provoke volatility, the British Pound has seen comparatively subdued trade in the early stages of Friday’s European session. A general depreciation can be attributed to ongoing negative sentiment towards the Bank of England (BoE) after dovish comments from policymaker Ben Broadbent. Broadbent stated that he would argue against a benchmark rate increase irrespective of developments in China. That forced futures traders to delay bets of a rate hike until October 2016.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3631.
The Volkswagen scandal, which saw the automotive company cheat US emission laws, is having a hugely detrimental impact on demand for the common currency. Given that Germany is the primary driver behind the Eurozone economy, and the automotive industry is the primary driver behind German economic growth, the prospect that other companies have also cheated emissions tests is very alarming for those invested in the single currency. In addition, domestic data showed that the Eurozone money supply grew less-than-anticipated in August which aided the Euro downtrend on Friday.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within the range of 1.3594 to 1.3693 during Friday’s European session.
Pound Sterling to US Dollar (GBP/USD) Conversion Rate Forecast to Trend Narrowly ahead of US Data
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within a limited range on Friday afternoon.
As traders await US economic data, due for publication later on Friday, the Dollar edged lower versus many of its currency rivals. The depreciation can be linked to the fact that the Shanghai Composite Index ended the Asian session 1.6% down. This caused traders to question yesterday’s hawkish comments from Federal Reserve policymakers. Policymakers including Chairwoman Janet Yellen suggested that it was still appropriate for the Federal Reserve to hike the benchmark interest rate within 2015.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5222, moving between a low of 1.5206 and a high of 1.5260.
Pound Sterling Forecast: Sentiment to Drive Volatility
Given the absence of domestic data today, the Pound Sterling is likely to see comparatively subdued trade for the remainder of Friday’s European session. Any volatility, therefore, will be the result of changes in market sentiment and developments in the currency market. Next week should see plenty of Sterling movement, however, with several influential British data publications due for release. Of particular significance should be the final figure for second-quarter gross domestic product and the manufacturing and construction PMIs.