Pound Sterling to Euro (GBP/EUR) Conversion Rate Forecast to Advance on Consolidation Trading
The Pound Sterling to Euro (GBP/EUR) exchange rate strengthened by around 0.5% on Friday morning.
As has been well-publicised, the British Pound has suffered huge losses since Prime Minister David Cameron announced that the EU referendum will take place on June 23rd.
However, over the past few days the Pound has made a moderate recovery versus its major peers thanks to consolidation trading and investors taking advantage of the currency’s low trade weighting.
Today’s British economic data printed poorly, but this has not had an impact on GBP as yet. February’s Consumer Confidence Survey was predicted to drop from 4 to 3, but the actual result fell to 0.
‘Despite the positive impact of continued low interest rates and subdued inflation on day-to-day household budgets, the feeble outlook for growth and a variety of economic uncertainties since the start of the year has depressed optimism,’ said GfK’s Joe Stanton.
Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.2734.
Meanwhile, the Euro has suffered a disappointing week as demand for financer assets cooled in the face of stabilising market sentiment.
Lower-than-expected Eurozone Consumer Prices added to Euro headwinds amid concerns that the European Central Bank (ECB) will respond with aggressive stimulus measures.
Later today, the German Consumer Price data will be very likely to provoke Euro volatility. A poor showing will all-but confirm that the ECB will be forced to introduce further stimulus measures.
Pound Sterling to US Dollar (GBP/USD) Conversion Rate Predicted to Advance ahead of US GDP
The Pound Sterling to US Dollar (GBP/USD) exchange rate advanced by around 0.4% on Friday morning
As traders await key US data releases, the Dollar softened versus a number of its major peers. Once again this is mostly consolidation of the Pound, but concerns regarding Federal Reserve policy outlook are also weighing on Dollar demand.
Some traders fear that the US will fall into recession, so today’s fourth-quarter Gross Domestic Product and Core Personal Consumption Expenditure reports will be of significance.
However, analysts at Commerzbank have warned that even if domestic data reduces the likelihood of a US recession, political uncertainty is likely to limit the appeal of the US asset.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.4024.
Pound Sterling to US Dollar (GBP/USD), Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast: US Data to Provoke Volatility
As mentioned above, US GDP and Core Personal Consumption Expenditure reports will be of significance. Personal Income and Personal Spending data will also be closely monitored given that improved wages and consumption should alleviate concerns of a US recession.
US data will also impact on the Euro thanks to EUR/USD negative correlation. German inflation data will also be very likely to cause Euro changes.
Given the absence of further British data, the GBP/USD conversion rate will see movement mostly in response to USD changes. With that said, any mention of the EU referendum from UK officials usually coincides with Sterling volatility.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within the range of 1.2614 to 1.2749 during Friday’s European session.
The Pound Sterling to US Dollar (GBP/UDSD) exchange rate was trending within the range of 1.3959 to 1.4043.