The Pound Sterling to Euro (GBP/EUR) exchange rate continues to soften after the European Central Bank (ECB) announced it was adding to its bond-buying list. This will allow the Frankfurt-based central bank to avert any crises in addition to nullifying the potential contagion from a Grexit. Meanwhile, the Pound Sterling to US Dollar (GBP/USD) exchange rate edged higher after US Jobs data printed disappointingly. Even the seemingly impressive drop in unemployment was the result of the lowest participation rate since 1977.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Decline despite Better-than-Expected British Construction Output
The Pound Sterling to Euro (GBP/EUR) exchange rate declined by around -0.37% on Thursday morning.
Thursday has seen the Pound fluctuate versus its peers thanks to mixed domestic data. Nationwide House Prices failed to meet with expectations on both an annual and monthly basis in June. However, the Markit/CIPS Construction PMI bettered estimates of a increase from 55.9 to 56.5, with the actual result rallying to 58.1. Tim Moore, Senior Economist at Markit, said; ‘UK construction companies experienced a growth rebound and surge in business confidence at the end of the second quarter. Survey respondents cited robust inflows of new work in June, adding to already strong order books across the sector.’
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4091.
The shared currency, meanwhile, advanced versus its major rivals despite ongoing difficulties in Greece. The appreciation can be linked to news that the European Central Bank (ECB) will not pull funding for Greek banks yet, although keeping funding limited at this juncture. ‘The Emergency Liquidity Assistance ceiling for Greek banks was maintained at the current level,’ an ECB spokesman said.
The situation in Greece is still having a marked affect on trader confidence, however, especially after hopes for a last-minute deal were dashed by European officials unwilling to resume negotiations ahead of the referendum on the austerity measures proposed by creditors, due to take place on Sunday.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within the range of 1.4074 – 1.4136.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Trend within Limited Range ahead of US Labour Data
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within a narrow range on Thursday morning.
Although British construction data printed positively, the Pound has not been able to notch up any significant gains in response. This could be the result of fears that the British military will bomb Islamic State targets in Syria following the tragic death of Britons in Tunisia last week. The Royal Air Force has been carrying out strikes in Iran since September but Defence Secretary Michael Fallon is urging parliament to consider missions in Syria as well.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5611.
The US Dollar, meanwhile, is holding a position of strength after positive confidence data spurred an uptrend. As traders await US Unemployment Rate and Change in Non-Farm Payrolls data, both of which hold high economic weighting and will drive US Dollar movement, the US asset is unlikely to see much volatility.
The Pound Sterling to US Dollar (GBP/US) exchange rate was trending within the range of 1.5578 – 1.5618.