The Pound Sterling to Euro (GBP/EUR) exchange rate advanced by around 0.3% on Thursday morning.
Although the current weak position of the US Dollar would ordinarily provoke demand for the common currency, the Euro softened versus many of its peers on Thursday morning. The depreciation can be linked to fears that far more Volkswagen vehicles will need to be recalled than originally anticipated. The scandal could have long-term detrimental ramifications for Germany and the Eurozone.
The Pound, meanwhile, ticked higher versus many of its currency rivals after positive labour market data yesterday continues to support demand for the British asset. With a complete absence of domestic data today, the British asset is likely to see volatility in response to market changes and US Dollar movement.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3524.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Strengthen after UK Jobless Rate Falls Unexpectedly
The Pound Sterling to Euro (GBP/EUR) exchange rate advanced by around 0.7% on Wednesday afternoon.
British economic data produced a mixed-bag of results on Wednesday morning but an unexpected fall in unemployment caused the Pound to rally versus many of its currency rivals. In the three months through August, ILO Unemployment Rate came in at 5.4% despite the median market forecast that unemployment would hold at 5.5%. The drop to 5.4% is the lowest level of unemployment since 2008.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3488.
Meanwhile, the Euro is holding a comparatively weak position versus its major peers despite a soft US Dollar. The lack of appreciation, irrespective of negative correlation with the North American asset, can be attributed to European stocks tumbling in the face of economic issues in the world’s second-largest economy. Also weighing on demand for the single currency was August’s Eurozone Industrial Production which saw 0.9% growth on the year, only half the 1.8% market consensus.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within the range of 1.3367 to 1.3509 during Wednesday’s European session.
Pound Sterling to US Dollar (GBP/USD) Conversion Rate Predicted to Rally after US Advance Retail Sales Missed Estimated Growth
The Pound Sterling to US Dollar (GBP/USD) exchange rate advanced by around 1.2% on Wednesday morning.
Although the unexpected drop in unemployment supported a Sterling rally, gains have been somewhat slowed after wage-growth data failed to impress. On the year, Average Weekly Earnings saw 3.0% growth in the three months to August, missing the market consensus of 3.1% wage growth. Additionally, Weekly Earnings ex-Bonus saw only 2.8% growth on the year in the same time period, well below expectations of 3.0% wage growth.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5359.
After US Advance Retail Sales saw slower-than-expected growth, the US Dollar cooled versus its major peers. Aiding the depreciation can be linked to speculation of long-term delays to a benchmark rate hike after disappointing inflation data out of China highlighted ongoing economic struggles in the world’s second-largest economy. A speech by Fed official James Bullard also weighed on demand after he stated that it would be very difficult for the Fed to change gear and lift rates in October after only a month of additional data to analyse.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within the range of 1.5251 to 1.5372 during Wednesday’s European session.
Pound Sterling (GBP) Exchange Rate Forecast: Subdued Trade Likely for the Remainder of the Week on Absence of Data
Given the complete absence of British economic data for the remainder of the week’s trade, the Pound is likely to see subdued trade. With that being said, however, there is the potential for volatility as a result of Euro and US Dollar movement. If the Euro declines the Pound should advance thanks to the potential for improved trade. This would most likely occur if the European Central Bank (ECB) announced intentions to expand monetary stimulus. Conversely, if the US Dollar advances in response to improved rate hike bets the Pound will also advance as most traders agree that the Bank of England (BoE) will not look to hike the benchmark interest rates ahead of the Fed.
The Pound Sterling to Euro (GBP/EUR) and US Dollar (GBP/USD) exchange rates are likely to continue trending higher for the remainder of Tuesday’s European session.