Newsflash: UK GDP Shows Growth Rebound, Pound Gains
As the European session progressed the Pound advanced by 0.7% on the Euro and 0.8% on the US Dollar in response to the UK’s GDP data for May.
UK GDP printed at 0.6%, up from a positively revised 0.5% in April.
The report bolstered demand for Sterling and the currency rallied against a number of its rivals.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3739
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5513
Both the Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates posted modest gains today as UK industrial production increased by more-than-forecast.
Pound Sterling to Euro (GBP/EUR), Pound Sterling to US Dollar (GBP/USD) Exchange Rate News – HSBC Job Cuts, UK Trade Data, Obama Comments and Greek Bailout Talks Impact Trading
Prior to the publication of the UK’s Industrial Production and Manufacturing Production data, the Pound Sterling to Euro (GBP/EUR) exchange rate softened slightly but managed to hold above the 1.36 level.
Meanwhile, the Pound Sterling to US Dollar (GBP/USD) exchange rate was up nearly 0.4% as the US Dollar edged lower across the board in reaction to comments issued by US President Barack Obama.
While rumoured remarks from the US chief, regarding his feelings towards a strong domestic currency, were later dismissed, Obama did infer that institutions need to stop tightening policy and start supporting growth – a stance which bolstered demand for higher yielding assets and drove the ‘Greenback’ lower.
On Tuesday the Pound declined against both the Euro and US Dollar in response to the news that HSBC plans to slash 8,000 UK jobs, and the British currency largely failed to recoup losses in spite of an impressive tightening of the national trade deficit.
Although the GBP/USD currency pair advanced before the close of trading, the GBP/EUR exchange rate was pressured lower by the latest developments in the Greek debt saga.
The Hellenic nation’s conciliatory mood continued and Greece presented its creditors with a revised list of reforms.
The Pound Sterling to Euro (GBP/EUR) exchange rate fell to a low of 1.3585
Euro to Pound Sterling (EUR/GBP) Exchange Rate Forecast: Tsipras, Merkel and Hollande Gather to Discuss Greece, French Industrial Output Plummets
Although the latest Greek bailout proposal was rejected by its creditors, the Euro managed to derive some support on Wednesday from expectations that today’s gathering of key leaders may yield some results.
Greek Prime Minister Alexis Tsipras, German Chancellor Angela Merkel and French President Francois Hollande are meeting today in order to discuss Greece.
Hopes that the leaders will attempt to reach an accord which is acceptable to both sides prevented the Euro from dropping too extensively following the publication of less-than-impressive French industrial production numbers.
The pace of French industrial output was shown to have dropped by -0.9% in April, month-on-month, rather than increasing the 0.1% expected.
The Euro to Pound Sterling (EUR/GBP) exchange rate achieved a high of 0.7365
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Trends Higher, but US Retail Sales Forecast to Cause Currency Movement
While the Pound Sterling to US Dollar (GBP/USD) exchange rate could fluctuate today in response to the release of the MBA Mortgage Applications figure and the US Monthly Budget Statement, investors with an interest in the pairing will largely be looking ahead to tomorrow and the publication of US Advance Retail Sales data.
Economists are envisaging a notable rebound in consumer spending in May following stagnation in April, but if the 1.2% gain fails to materialise, the US Dollar could be pressured lower.
US initial jobless/continuing claims and Business Inventories figures could also influence the direction taken by ‘Cable’ towards the close of the week
The US Dollar to Pound Sterling (USD/GBP) exchange rate fell to a low of 0.6463
UK Industrial Production Increases, Pound Sterling (GBP) Exchange Rate Fluctuates – UK GDP Ahead
On Wednesday the Pound fluctuated against both the Euro and US Dollar following the publication of the UK’s industrial production data.
Industrial production was shown to have increased by 0.4% in April, month-on-month, beating the 0.1% forecast.
On the year industrial production was up 1.2%, again beating the projection for 0.6% year-on-year growth.
However, Manufacturing Production fell -0.4% on the month (versus the 0.1% forecast) and printed at 0.2% on the year instead of 0.4%.
Later today the Pound Sterling to US Dollar (GBP/USD) and Pound Sterling to Euro (GBP/EUR) exchange rates could fluctuate in response to the National Institute of Economic and Social Research (NIESR) UK GDP estimate for May.
GBP/EUR, GBP/USD Exchange Rate Forecast – UK Construction Output, Eurozone Industrial Output, US Confidence Data to Trigger Movement before the Weekend
Over the next couple of days the Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates could fluctuate further in response to the week’s final ecostats for the UK, Eurozone and US.
The UK is set to publish the RICS House Price Balance and Construction Output figures, while the Eurozone is due to release its own Industrial Production stats.
UK Construction Output is believed to have risen by 0.1% on the month and 0.5% on the year in April, down from the previous month’s figures.
Better-than-forecast results would be Pound supportive. However, Eurozone Industrial Production data is expected to impress so the GBP/EUR exchange rate may struggle.
In terms of US data the report most likely to cause GBP/USD exchange rate movement before the weekend is the University of Michigan Confidence Index. If the measure of sentiment rises as expected it would bolster the ‘Greenback’.
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7332, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6476, the Pound Sterling to US Dollar exchange rate was trending in the region of 1.5437 and the Pound Sterling to Euro (GBP/EUR) exchange rate is trending in the region of 1.3634