Pound Sterling to Euro (GBP/EUR) Exchange Rate Softens after Dutch Growth Met with Expectations
The Pound Sterling to Euro (GBP/EUR) exchange rate edged lower by around -0.4% on Thursday morning.
In response to UK BBA Loans for House Purchase data the Pound edged lower versus most of its major peers. November’s BBA Loans for House Purchase was forecast to advance from 45.43K to 46.2K, but the actual result dropped to 45K. Aiding the depreciation is trader profit taking after yesterday saw the Pound advance irrespective of less-than-ideal domestic data results. With trading volumes thin in the run-up to year-end, November’s Mortgage Approvals data has the potential to provoke greater volatility than under ordinary circumstances.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3574.
The lack of market liquidity has also seen a marked reaction to growth data from the Netherlands. The final figure for third-quarter Dutch Gross Domestic Product met with the median market forecast of 1.9% on the year and 0.1% on the quarter. Later this morning, French labour market data and Industrial Production data pertaining to Belgium have the potential to cause changes for the single currency.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Trend Narrowly ahead of US Labour Market Data
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within a limited range on Thursday morning.
In addition to trader profit taking and disappointing domestic data causing the Pound to slide, investors have digested the impact of the slower-than-expected third-quarter British growth. Whilst this growth was still considered robust, and the UK is still one of the best performing developed economies in 2015, it has eased pressure on the Bank of England (BoE) to tighten policy. ‘There will be even less near-term pressure to raise interest rates,’ said Investec’s Philip Shaw.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.4876.
Yesterday’s US data produced mostly positive results which saw the US Dollar hold a position of strength versus its major peers. November’s Durable Goods Orders came in at 0.0%, bettering the median market forecast -0.6%. In addition, Core Personal Consumption Expenditure equalled the market consensus of 1.3% growth. Later today, US labour market data has the potential to provoke US Dollar movement.
Pound Sterling Forecast: Thin Trading Volumes to Provoke Volatility
Although there is an absence of significant British data next week it does not necessarily mean that the Pound will see subdued movement. With trading volumes thin markets will react significantly to ecostats. The Pound, therefore, is likely to see volatility in response to market movement. The solitary British economic data publication next week, Wednesday’s Nationwide House Prices for December, has the potential to cause moderate Sterling movement.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within the range of 1.3556 to 1.3639.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within the range of 1.4866 to 1.4911.