Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Trend withi Narrow Range on UK Services
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within a narrow range on Friday afternoon.
Mixed domestic data results caused the Pound to fluctuate versus its peers on Thursday. Nationwide House Prices declined by -0.2% in June on the month; failing to meet with the median market forecast 0.5% price increase. On the year, house prices advanced by 3.3% in June; falling behind the market consensus of 4.5%. However, those disappointing results were somewhat countered by better-than-expected construction output. June’s Construction PMI was forecast to advance from 55.9 to 56.5, but the actual result reached 58.1.
On Friday, the Pound gained versus many of its peers as traders digested the positive construction data and assessed the impact it might have on a 2015 Bank of England (BoE) benchmark rate hike. The UK Services PMI bettered estimates which caused the pound to rally versus its peers. The combination of improving services and construction growth saw the composite PMI advance beyond expectations, despite the drag from less-than-ideal manufacturing output.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4081.
The Euro, meanwhile, edged higher on Friday having strengthened on Thursday. The appreciation can be linked to optimism that Greece will secure a debt relief deal after the International Monetary Fund (IMF) conceded that Greek debt was too high to support a sustained economic recovery. ‘Coming on top of the very high existing debt, these new financing needs render the debt dynamics unsustainable,’ the IMF said in the report. ‘We are asking the Greeks to do very difficult things,’ an official said. ‘We are asking the Europeans to do difficult things also.’
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within the range of 1.4049 – 1.4081 today.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Strengthen after US Employment Report
The Pound Sterling to US Dollar (GBP/USD) exchange rate gained by around 0.14% on Friday afternoon.
After having registered some particularly disappointing labour market data results on Thursday, the US Dollar is holding a comparatively weak position on Friday morning. Change in Non-Farm Payrolls was expected to see 233,000 newly employed, but the actual result for June came in at 223,000. On first sight June’s Unemployment Rate looked positive, having dropped from 5.5% to 5.3%, but the headline figure masked the lowest participation rate since 1977.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5629 today.
With an absence of domestic data to provoke volatility on Friday, the US Dollar is likely to hold losses versus most of its major peers. With that being said, if the situation in Greece takes a turn for the worse and amplifies safe-haven demand, the ‘Greenback’ (USD) may appreciate.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within the range of 1.5599 – 1.5624.