UK Construction Output Rebounds: GBP/EUR Stronger, GBP/USD Softer
The Pound was little changed following the release of the latest UK Construction Output data, with the currency holding a 0.2% gain against the Euro and a 0.2% loss against the US Dollar.
Construction figures for February were positively revised to a monthly decline of -0.3% and an annual decline of -0.2%, but March’s month-on-month rebound disappointed projections for a 4.0% increase by rising 3.9%.
On the year UK Construction Output was up 1.6% – a much stronger YoY gain than the 1.1% predicted.
The GBP/USD exchange rate is likely to experience further movement later today as the US releases a number of ecostats, including the University of Michigan Confidence gauge and Industrial/Manufacturing Production numbers.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3857
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trading in the region of 1.5743
Earlier…
GBP/EUR Holds Declines, GBP/USD Remains Bullish
After all the excitement of yesterday, today promises to be much quieter in terms of market-moving data.
The only UK ecostat, RICS House Price Balance, printed at 33% in April instead of the 22% expected.
The report had little impact on Sterling and the Pound Sterling to Euro (GBP/EUR) exchange rate held the previous day’s decline. Conversely, the uptrend in the GBP/USD exchange rate continued as investors dwelt on Wednesday’s disappointing US retail sales report.
Today’s US initial jobless/continuing claims numbers could have an impact on Pound to US Dollar trading in the hours ahead.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3818
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trading in the region of 1.5772
Earlier…
Newsflash – GBP/EUR and GBP/USD Return to Day’s Opening Levels after Dovish BoE Comments
After surging in response to upbeat UK employment figures, both the GBP/EUR and GBP/USD exchange rates declined as investors reacted to a surprisingly downbeat Inflation Report from the Bank of England.
During a press conference BoE Governor Mark Carney noted; The most important legacies of the financial crisis are the persistent headwinds which continue to weigh on the UK economy. [They demand] not only a more gradual rate of increase in bank rate than in previous cycles, but also require levels of bank rate to remain below average historical levels for some time to come.’
The BoE cut the UK’s growth forecast for this year from 2.9% to 2.5% and the Pound broadly softened as a result.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3967
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trading in the region of 1.5671
Earlier…
Newsflash – UK Unemployment Drops to 5.5%, GBP/EUR and GBP/USD Exchange Rates Jump
As the UK’s latest employment figures surpassed expectations, the Pound Sterling to Euro (GBP/EUR) exchange rate surged above 1.40 following their release.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was also trending comfortably above the 1.57 level after the report was published.
The UK’s unemployment rate was shown to have fallen from 5.6% to 5.5% in the three months through March and average earnings both including and excluding bonuses ticked higher.
While these positive ecostats will buoy the Pound for a time, a dovish inflation report from the BoE could see Sterling give up gains, so investors will still be keeping a close eye on that release.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4005
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5736
Earlier…
Both the Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates could experience extensive movement in the hours ahead depending on the tone adopted by the Bank of England (BoE) in its inflation report and the strength of UK employment data.
Pound Sterling to Euro and Pound Sterling to US Dollar Exchange Rate Forecast – GBP/EUR Softer after Greek Debt Payment, GBP/USD Breaches 1.57 Before US Retail Sales Data
Although the Pound was buoyed against a number of its peers by a better-than-anticipated UK Industrial Production print, the Pound Sterling to Euro (GBP/EUR) exchange rate failed to sustain its recent upswing as Greece avoided defaulting on its latest repayment to the International Monetary Fund (IMF).
The Pound Sterling to Euro (GBP/EUR) exchange rate hit a low of 1.3916
While concerns that Greece will be out of funds within two weeks are putting pressure on the common currency, the Euro was supported by the development as it reduced the odds of a ‘Grexit’ – for the time being at least.
Yesterday Greek Finance Minister Yanis Varoufakis asserted that his nation is just weeks away from being completely penniless (or Euroless, if you prefer) and his remarks prompted some industry experts to bet that Greece will be forced to agree terms with its creditors in the days ahead.
While the Pound continued to hover around the 1.39 level against the Euro, it was able to achieve a new best exchange rate for 2015 against the US Dollar as the world’s largest economy published more mixed data.
The Pound Sterling to US Dollar (GBP/USD) exchange rate hit a high of 1.5708
The US NFIB Small Business Optimism measure showed improvement (rising from 95.2 to 96.9 in April) but JOLTs job openings came in well below predicted levels.
Pound Sterling to Euro (GBP/EUR) Exchange Rate News – French GDP Exceeds Expectations, But Germany Disappoints, Eurozone Growth Figure Ahead
The Pound Sterling to Euro (GBP/EUR) exchange rate experienced volatility early in Wednesday’s European session as growth figures for the Eurozone’s largest economies was published.
Although the pace of growth in France exceeded expectations by coming in at 0.6% in the first quarter, quarter-on-quarter, rather than 0.4% as forecast, Germany failed to perform as well as hoped.
The Eurozone’s powerhouse was shown to have grown by 0.3% in the first three months of the year (QoQ) – the same level of output as the UK and short of the 0.5% rate of expansion projected.
Euro losses were limited however as Germany’s final consumer price index for April was positively revised, with the annual pace of consumer price growth printing at 0.5%.
If the day’s Eurozone growth and industrial production numbers fail to impress, the Euro could come under pressure as the European session continues.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate News – ‘Cable’ Achieves Best Exchange Rate of 2015 before US Sales Report
Prior to the publication of the UK’s Inflation and Employment reports, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5690, having briefly risen above 1.57 earlier in the day.
While UK news will be a major driver of GBP/USD movement today, investors will also be taking an interest in the latest US Advance Retail Sales number.
Economists are anticipating a 0.2% increase in consumer spending – a considerable drop off from the 0.9% gain recorded in March.
A lower figure would weigh on the US Dollar while a stronger result could give the currency a lift.
Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast: Hawkish BoE Inflation Report Could Drive Pound to New 2015 Best against ‘Greenback’
If this morning’s Inflation Report for the Bank of England contains positive revisions to the UK’s growth and inflation forecasts, there is a strong possibility that both the Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates could achieve fresh highs.
Conversely, as a slightly upbeat report has been priced in to a certain extent, any dovish remarks from the central bank could send the Pound spiralling lower.
The BoE may comment on the detrimental impact of a strong domestic currency or else intimate that the UK will struggle to rebound from the first-quarter slowdown.
In terms of the UK’s employment data, the key figures to focus on include Employment Change, Unemployment Rate and Average Earnings.
If the jobless rate falls from its current level of 5.6% the Pound will be bolstered. An uptick in average earnings would also be well received.
The Euro to Pound Sterling (EUR/GBP) exchange rate was trading in the region of 0.7163, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5693, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trading in the region of 0.6372, the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3956
