Pound Sterling to Euro (GBP/EUR) Recoups Losses Before UK Construction, Manufacturing Reports
Although Greece met its debt obligation and made a crucial payment to the International Monetary Fund (IMF) just in the nick of time, various industry experts remain concerned that the Hellenic nation is rapidly running out of options, and the Pound Sterling to Euro (GBP/EUR) exchange rate was accordingly able to recoup earlier losses.
The Pound extended declines against the US Dollar however as the US initial jobless/continuing claims stats showed that fewer-than-forecast people applied for unemployment benefits in the past four weeks.
Tomorrow movement in both the GBP/EUR and GBP/USD exchange rates could be caused by the UK’s Construction Output report and Manufacturing/Industrial Production figures.
Positive UK results could see Sterling enter the weekend trending in a stronger position.
Ecostats for the Eurozone are in short supply, but the GBP/USD exchange rate could fluctuate in response to the US Monthly Budget Statement.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3801
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trading in the region of 1.4752
GBP/EUR, GBP/USD Exchange Rates Fall as UK Trade Deficit Widens
Ahead of the Bank of England (BoE) interest rate announcement, both the Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates softened in response to the UK’s trade balance figures.
The data showed that the UK trade deficit widened to a seven-month high in February due to a sharp drop-off in the value of exports.
According to Reuters News Agency; ‘While the trade deficit narrowed in the fourth quarter of last year and helped overall economic growth in the period, Thursday’s figures will do little to ease concerns that Britain’s strong economic recovery is still too reliant on consumer spending.’
As the BoE has highlighted the deficit as a key concern, the data had a negative impact on the British asset.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3766 while the Pound Sterling to US Dollar (GBP/USD) exchange rate was trading in the region of 1.4792.
The Pound Sterling to Euro (GBP/EUR) exchange rate briefly advanced above the 1.38 level on Thursday as the meeting between the Greek and Russian political heads caused concern, but the Pound Sterling to US Dollar (GBP/USD) exchange rate shed some of its recent gains as the FOMC minutes were deemed moderately hawkish.
Pound Sterling to Euro (GBP/EUR) Exchange Rate News: German Industrial Production Disappoints, but GBP/EUR Forecast to Give Up Gains?
On Wednesday the Pound Sterling to Euro (GBP/EUR) exchange rate gained in response to speculation surrounding the meeting between Greek Prime Minister Alexis Tsipras and Russian President Vladimir Putin.
Although it was asserted that Greece did not ask Russia for financial aid during the exchange, Putin did intimate that Russia would consider issuing loans to the Hellenic nation to fund larger joint projects.
The Pound Sterling to Euro (GBP/EUR) exchange rate hit a high of 1.3819
While immediate fears of a Grexit and Greece/Russia union were averted, some industry experts still question the nation’s place in the Eurozone.
According to one prominent French economist, the current negotiations and attitudes of key European political officials could drive Greece from the currency bloc.
When discussing the French and German treatment of Greece, Thomas Piketty implied that the main economies in the Eurozone are ‘mistreating themselves’ as well as Greece. He added; ‘We need more political integration, more democratic institutions. You can’t just do it with summits of finance ministers.’
The Pound failed to hold gains against the Euro however even as Germany published mixed economic data.
While industrial production was shown to have increased by slightly more than expected in February on a month-on-month basis, a negative revision to January’s figures left the annual figure at -0.3% rather than the 0.6% anticipated.
Meanwhile, Germany’s trade surplus was shown to have expanded by more-than-expected while the current account surplus increased by less-than-anticipated.
On a seasonally adjusted basis, exports were up 1.5% on the month (beating projections for an increase of 1.0%) while imports rose 1.8% instead of the 1.2% projected.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate News: FOMC Minutes Forecast Rate Increase in 2015
Although the Pound Sterling to US Dollar (GBP/USD) exchange rate approached the key technical support level of 1.50 on Wednesday, Sterling failed to push through it and ‘Cable’ staged a retreat following the release of minutes from the last Federal Open Market Committee (FOMC) meeting.
The Pound Sterling to US Dollar (GBP/USD) exchange rate hit a high of 1.4886
While the minutes were taken prior to the publication of the disappointing batch of US employment figures (and are therefore not an accurate indication of the committee’s current feelings) they were slightly more hawkish than some industry experts had anticipated and allowed the US Dollar to gain on a number of peers.
The minutes stated; ‘Several participants judged that the economic data and outlook were likely to warrant beginning normalisation at the June meeting.’
Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast: UK Trade Data, BoE Announcement Ahead
As the European session progresses both the Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates could experience volatility following the publication of the UK’s latest trade data.
As the Bank of England (BoE) has cited a widening deficit as a key concern, disappointing data could weigh on the Pound.
The BoE interest rate announcement is unlikely to have much impact on Sterling trading as the central bank isn’t expected to make any revisions to fiscal policy.
In terms of US news, the main reports to be aware of are the nation’s initial jobless/continuing claims figures.
The Euro to Pound Sterling (EUR/GBP) exchange rate was trading in the region of 0.7270, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.4783, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trading in the region of 0.6761, the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3755