Newsflash: Pound Advances to 1.57 against US Dollar Prior to US Data
After shedding half a cent in reaction to the revised US first quarter growth data, the Pound Sterling to US Dollar (GBP/USD) exchange rate recovered losses on Thursday.
The pairing climbed back above 1.57 and could advance further in the hours ahead if today’s US ecostats (including the nation’s Services PMI and initial/continuing jobless claims numbers) disappoint forecasts.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5723
Newsflash: GBP/USD Returns to Day’s Opening Levels after US GDP
As the US first quarter growth data confirmed that the world’s largest economy contracted by -0.2% in the first three months of the year, rather than the -0.7% originally estimated, the Pound Sterling to US Dollar (GBP/USD) exchange rate pared its earlier gains and returned to trending around the day’s opening levels of 1.5745.
The GBP/EUR exchange rate edged slightly lower as trading progressed and investors fixated on the upcoming gathering of Eurogroup officials.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5674
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4031
During the European session the Pound Sterling to Euro (GBP/EUR) exchange rate moved away from the four-week high achieved on Tuesday while the Pound Sterling to US Dollar (GBP/USD) currency pair recouped some of its earlier losses.
Pound Sterling to Euro and Pound Sterling to US Dollar Exchange Rate News: GBP/EUR Hits 4-Week High on Greek Developments, BoE Rate Hike Comments, GBP/USD Declines Despite Poor US Data
Yesterday the Pound Sterling to Euro (GBP/EUR) exchange rate surged to a four-week high of over 1.41 as the Greek populace reacted negatively to the latest proposals put forward by the nation’s Prime Minister to its creditors.
The Pound Sterling to Euro (GBP/EUR) exchange rate hit a high of 1.4109
Although the creditors appear happier with this latest draft (which includes a 10% increase in restaurant tax) the public, and factions of the government, are less so. Some analysts have also suggested that the steps could see Greek economic output drop by -3%.
Consequently, the Euro shed earlier gains and weakened against a number of its peers before the close of the local session.
Meanwhile, the Pound Sterling to US Dollar exchange rate fell further away from its recent seven-month high despite US Durable Goods Orders data and Markit’s Manufacturing PMI falling short of forecasts.
The ‘Greenback’ managed to continue trending in a stronger position against the majority of its currency counterparts as Federal Reserve Official Jerome Powell asserted that there’s a 50-50 chance of him voting for an increase in interest rates in September.
The Pound Sterling to US Dollar (GBP/USD) exchange rate achieved a high of 1.5803
While the Pound has since edged away from its recent high against the US Dollar, both the GBP/EUR and GBP/USD exchange rates were supported by comments issued by Bank of England (BoE) policymaker Martin Weale.
Although the Monetary Policy Committee (MPC) was unanimous in its decision to leave interest rates on hold at the last policy meeting, Weale asserted that markets should prepare for borrowing costs to be adjusted as early as August.
When speaking of the current state of the UK economy Weale observed; ‘If you’d asked me last autumn how rapidly I thought wages might pick up, looking at the most recent numbers, the movement seems to have been a bit faster than that. Recently, it seems that rather than [wage increases] fizzling out, the labour market… is fizzing way nicely.’
Euro to Pound Sterling (EUR/GBP) Exchange Rate Forecast – Eurogroup Officials Gather to Discuss Greece, German IFO Surveys Fall Short
The Euro to Pound Sterling (EUR/GBP) exchange rate managed to register a very modest gain on Wednesday morning as Eurogroup officials prepared to meet, once more, to discuss the Greek situation.
In the view of economist Erik Nielsen; ‘We have now seen enough progress for the finishing line to have become visible. Failure from here is difficult to envisage. This means that various liquidity measures will be employed, as needed, until it’s all signed off – and the risk of arrears has significantly declined’.
However, any Euro gains were limited due to the German IFO Business Climate, Current Assessment and Expectations reports.
The Business Climate gauge fell from 108.5 to 107.4 in June (lower than forecast) while the Expectations index eased to 102.0 from 103.0 and the Current Assessment number printed at 113.1 – defying the 114.1 projection.
However, annual first quarter growth data for France did beat forecasts.
The Euro to Pound Sterling (EUR/GBP) exchange rate fell to a low of 0.7084
US Dollar to Pound Sterling (USD/GBP) Exchange Rate Forecast – UK Loans for House Purchase Data Disappoints but ‘Cable’ Holds Gains
The US Dollar to Pound Sterling (USD/GBP) exchange rate fell by almost -0.4% during the local session despite the UK’s BBA Loans for House Purchase number failing to meet forecasts.
Loans had been expected to rise to 43350 but actually came in at 42530.
Although the report was the only moderately influential UK ecostat of the week, it had little impact on the Pound in light of current economic concerns.
The US Dollar to Pound Sterling (USD/GBP) exchange rate fell to a low of 0.6331
Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast: Greek Deal, US GDP Data, German GfK Confidence Index Ahead
The Eurogroup gathering and any progress made in the Greek situation is likely to be the main cause of Pound Sterling to Euro (GBP/EUR) exchange rate movement today. Investors will also be looking ahead to tomorrow’s German GfK Consumer Confidence Index, which is expected to show no change.
Meanwhile, the direction taken by the Pound Sterling to US Dollar (GBP/USD) currency pair may be affected by today’s US GDP data for the first quarter.
If the figure is positively revised from contraction of -0.7% to contraction of -0.2%, as economists believe will be the case, the Pound may fall against the ‘Greenback’ before the close of trading.
The Euro to Pound Sterling (EUR/GBP) exchange rate was trading in the region of 0.7108, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5800, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trading in the region of 0.6331, the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4066