The Pound Sterling (GBP) has trended narrowly in a negative range against the Euro (GBP/EUR) and a positive range against the US Dollar (GBP/USD) today, mainly on account of the -1.1% drop in annual UK New Car Registrations for October.
BoE Tensions likely to amplify ahead of Impending Decision
The next set of releases due to affect the Pound Sterling (GBP) will be the Bank of England (BoE) Interest Rate Decision, Inflation Report and Minutes; regarding the last of these three, investors have predicted that a rise from the usual 1-8 ratio of voters to possibly 3-6.
The Pound Sterling to Euro (GBP/EUR) exchange rate has risen today, although the Pound has trended narrowly in a negative range against the US Dollar (GBP/USD) on the back of unclear domestic data.
GBP/EUR, GBP/USD Exchange Rate News: Dip in UK Construction fails to Dampen Investor Enthusiasm
The Pound Sterling to Euro (GBP/EUR) exchange rate has rallied by 0.2% today, although the Pound has also trended narrowly against the US Dollar (GBP/USD) and posted a -0.4% drop against the Australian Dollar (GBP/AUD). However, for the most part the Pound has made healthy gains against many of its rivals on the news that the UK Construction PMI for October has remained in the growth area by printing 58.8. Although this was a decline from 59.9 points in September, the result was in line with expectations.
Among Sterling’s other gains today have been rises of 0.4% against the Hungarian Forint (GBP/HUF), 0.5% against the Russian Ruble (GBP/RUB) and the Hungarian Forint (GBP/HUF) and 0.6% against the Turkish Lira (GBP/TRY), which has declined significantly since yesterday’s rally on election results.
Common Currency (EUR) Flops on Spanish Data, Steady US Dollar (USD) Movement So Far Today
The Euro (EUR) has declined by over -0.2% against the Pound Sterling (EUR/GBP) and the US Dollar (EUR/USD) today, with the best results for the single currency being a narrow trending against the South African Rand (EUR/ZAR) and a 0.2% climb against the Polish Zloty (EUR/PLN). The Euro’s decline today has come from Spain posting a large rise in the Unemployment Change for October and a drop from 106.1 points to 99.8 for Consumer Confidence.
The US Dollar (USD) has fared slightly better today, posting small rises against the Pound Sterling (USD/GBP) and the Euro (USD/EUR), along with greater gains of 0.4% against the Norwegian Krone (USD/NOK) and 0.5% against the New Zealand Dollar (USD/NZD).
GBP, EUR and USD Exchange Rate Forecast: US Factory Orders due out ahead of ECB’s Draghi’s Speech
With the UK’s only economic publication of the day now out, it remains for the US and the Eurozone to provide further impetus for movement before tomorrow.
On the former side, the US Factory Orders for September are predicted to continue declining from -1.7% to -0.9%, while the October ISM for New York is predicted to rise slightly from 44.5 to 46.
The Eurozone’s largest event due in the near-future will be European Central Bank (ECB) President Mario Draghi’s speech on the Eurozone economy in Frankfurt; quantitative easing is likely to be mentioned, as recent speculation has forecast an adjustment being made to this weapon in the ECB’s arsenal.
Current GBP, EUR, USD Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4027, the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7130, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5415, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6489, the Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.0989 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9104 today.