The Pound Sterling to Swiss Franc (GBP/CHF), Pound Sterling to Euro (GBP/EUR) and Pound Sterling to Japanese Yen (GBP/JPY) exchange rates were all trading lower in the first half of Thursday’s European session after Halifax House Price data showed UK property valued declined from 8.3% to 8.1% in the three months through March.
Furthermore, the Bank of England (BoE) is due to make its monthly interest rate announcement on Thursday which could impact the GBP/EUR, GBP/CHF and GBP/JPY exchange rates dramatically. UK Trade Balance ecostats will also emerge.
Meanwhile, Japanese Machine Tool Orders noted a substantial decline from 28.9% in February to only 14.6% in March on the year.
The Bank of Japan’s Monthly Economic Report remained in line with forecasts and suggested that the economic recovery is continuing its moderate trend.
The Pound Sterling to Euro (GBP/EUR), Pound Sterling to Swiss Franc (GBP/CHF) and Pound Sterling to Japanese Yen (GBP/JPY) exchange rates were all trading higher in Wednesday’s European session after the Bank of Japan (BoJ) kept monetary policy stable despite failing to raise inflation, and upbeat Swiss Consumer Price Index ecostats.
Swiss inflation registered -0.9% contraction on the year in March from the previous month’s -0.8%, despite forecasts for a larger tumble to -1.1%.
The Pound Sterling to Euro (GBP/EUR), Pound Sterling to Swiss Franc (GBP/CHF) and Pound Sterling to Japanese Yen (GBP/JPY) exchange rates were all trending higher in the first half of Tuesday’s European trading after Markit’s UK Services Purchasing Managers Index (PMI) rose above forecasts.
— Chris Williamson (@WilliamsonChris) April 7, 2015
The leap to 58.6 from 56.7 surprised those economists who had predicted a smaller rise to 58.01 the strongest level achieved since August 2014.
Markit chief economist Chris Williamson stated: ‘The UK economy moved up a gear in March, recording the strongest pace of growth since last August. The three PMI surveys collectively indicate that the economy grew by 0.7% in the first quarter, reviving from the slowdown seen late last year.’
Euro to Pound Sterling (EUR/GBP) Exchange Rate Forecast to Fluctuate on Greece/Russia Deal
Meanwhile, the Euro is forecast to experience an interesting week for trading amid ongoing Greek negotiations. The Greek government recently brought forward a meeting between itself and Russia in what some have predicted is a move to discuss financial aid. If Greece turns to Russia for help, a ‘Grexit’ is likely to occur.
Centre for European Reform deputy director Simon Tilford commented: ‘There’s no doubt the Russians could provide small amounts of financial support, but they’re not in a position to give the kind of money Greece needs to stay in the Eurozone.’
‘The amounts involved are far beyond the scope of Moscow, whose economy is not much bigger than the Netherlands.’
As Greek Prime Minister Alexis Tsipras travels to Moscow, Greece’s deputy finance minister has put forward a €279B figure for German reparations. The government is currently pushing for war damages in an attempt to gain a better financial footing—a move that’s unlikely to be well received by the Eurozone powerhouse that is Germany.
Swiss Franc to Pound Sterling (CHF/GBP) and Euro (CHF/EUR) Exchange Rates Await Inflation Ecostats
The Swiss Franc to Pound Sterling (CHF/GBP), Swiss Franc to Japanese Yen (CHF/JPY) and Swiss Franc to Euro (CHF/EUR) exchange rates are all forecast to experience movement on Wednesday when the highly influential Swiss Inflation Rate figures emerge.
The Swiss economy is expected to record a -0.3% contraction in March, which would pull the annual ecostat down from -0.8% to -1.1%.
The Swiss Franc exchange rate is scheduled for another day of fluctuations on Friday when the Swiss Unemployment Rate ecostat is published. Economists have forecast a favourable fall from 3.5% to 3.4% on the year in March, while the seasonally adjusted figure remains at 3.2%.
The Japanese Yen exchange rate is also experiencing an interesting week, which began with softer data on Monday. The Japanese Coincident Index hit lows of 110.5 in February from the previous 113.3; economists had expected a slightly smaller slip to 110.7.
Japanese Yen (JPY) Exchange Rate Forecast to Fluctuate on Bank of Japan (BoJ) Policy Statement
Meanwhile, the Japanese Leading Index fell less than forecast to 105.3 from 105.5. Japanese Yen trading is likely to pick up on Wednesday with the release of the Bank of Japan’s (BoJ) policy statement and follow-up press conference with Governor Haruhiko Kuroda.
Japanese Machine Tool Orders will follow on Thursday and is forecast to moderately influence the Yen exchange rate.
Pound Sterling (GBP) Exchange Rate Forecast: GBP/EUR, GBP/CHF, GBP/JPY
The Pound Sterling to Euro (GBP/EUR), Pound Sterling to Swiss Franc (GBP/CHF) and Pound Sterling to Japanese Yen (GBP/JPY) exchange rates could be in for a choppy day of trading on Thursday when the Bank of England (BoE) releases its latest interest rate decision.
UK Trade Balance ecostats will also emerge on Thursday which could impact the Pound Sterling exchange rate.
Tuesday saw the BoE’s Financial Policy Committee release a statement which suggested that ongoing negotiations in Greece were likely to create negative effects within the UK economy.
Furthermore, Barclays have also suggested that the UK general election is the most dominant risk for the Pound Sterling exchange rate in 2015.
The prospect of a hung parliament and potential referendum for a departure from the EU has seen UK political debate heat up dramatically.
The Pound Sterling to Japanese Yen (GBP/JPY) exchange rate is reaching 178.4400. The Euro to Swiss Franc (EUR/CHF) exchange rate resides at 1.0468. The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is trading at 1.4340; the Pound Sterling to Euro (GBP/EUR) exchange rate is trending in the region of 1.3700.