Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Trend within a Limited Range Ahead of ECB Announcement
The Pound Sterling to Euro (GBP/EUR) exchange rate strengthened by around 0.2% on Wednesday afternoon.
After British government borrowing data produced a mixed-bag of results, the Pound was trending statically versus its major peers. Whilst Public Sector Net Borrowing saw the amount of new government debt come in below the median market forecast, government financing rose significantly. September’s Public Sector Net Borrowing came in at 8.6 billion which was well below the market consensus of 9.6 billion. September’s Public Finances data, however, showed that the amount of money financed to the government rose to 17.9 billion.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3628.
With a distinct lack of influential domestic data to provoke volatility, the shared currency was trending narrowly versus its major peers. A slight lean towards appreciation can be linked to ongoing speculation that the European Central Bank (ECB) will avoid expanding the quantitative easing program this year. However, a very slight increase in Eurozone Government Debt-GDP Ratio in 2014 may anchor Euro gains.
Pound Sterling to US Dollar (GBP/USD) Conversion Rate Predicted to Hold Steady ahead of US Mortgage Applications
The Pound Sterling to US Dollar (GBP/USD) exchange rate edged higher by around 0.1% on Wednesday afternoon.
In response to the UK government finances data, Jon Sindreu, writing for MarketWatch stated; ‘The UK’s budget deficit narrowed as public finances had their best September in eight years, government statisticians said Wednesday, a sign British Treasury chief George Osborne is more or less on track to meet his borrowing commitments for the fiscal year. The British public sector–excluding state-owned banks–borrowed 9.4 billion pounds ($14.5 billion) during the month, the Office for National Statistics said, the lowest September figure since 2007. Since the fiscal year started in April, the government has borrowed GBP7.5 billion less than during the same period of the previous fiscal year.’
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5464.
As traders await US Mortgage Applications data, the US Dollar is trending statically versus most of its major rivals. A slight lean towards depreciation can be linked to ongoing concerns that China’s economic woes will delay a Federal Reserve benchmark rate hike. The Shanghai Composite Index saw stock prices drop at the fastest pace in a month which weighed on demand for the US asset. Despite concerns over the global economy’s wellbeing, many traders are still hopeful that the Fed will look to tighten policy in December.
Pound Sterling Exchange Rate Forecast to Hold Steady ahead of Retail Sales Data
With a complete absence of further domestic data to provoke changes, the Pound is likely to hold its current position versus its major peers. Thursday is likely to see volatility with UK Retail Sales data due for publication. However, trader focus will be dominated by the European Central Bank (ECB) interest rate decision and accompanying speeches, so Sterling volatility may be somewhat subdued ahead of the announcement.
A complete absence of British economic data on Friday is likely to see subdued Sterling trade, although US Dollar positioning and Euro shifts will likely impact the currency.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within the range of 1.3552 to 1.3625.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within the range of 1.5411 to 1.5462 during Wednesday’s European session.