GBP/EUR, GBP/USD Exchange Rates Gain after UK Sales Data
On Thursday the Pound jumped by 0.8% against the US Dollar and 0.3% against the Euro as investors responded to a surprisingly upbeat UK Retail Sales Report.
The 1.2% month-on-month sales growth bolstered demand for Sterling and the British currency advanced on a number of its rivals.
Yesterday’s slightly dovish minutes from the last Federal Open Market Committee (FOMC) meeting also aided ‘Cable’s uptrend.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4033
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5663
BoE United in the Decision to Leave Interest Rates on Hold: GBP/EUR Holds Gain, GBP/USD Steady
Following the publication of minutes from the Bank of England’s (BoE) last policy meeting, the Pound continued trending in a stronger position against the Euro and remained trading in a narrow range against the US Dollar.
The minutes showed that all nine members of the Monetary Policy Committee (MPC) were in agreement on the the subject of leaving interest rates on hold for the foreseeable future.
Although the minutes did show, as they did last month, that the decision was becoming more ‘finely balanced’ for two members of the MPC, they offered no new information and had a fairly limited impact on the Pound.
However, the GBP/EUR exchange rate was able to advance above the 1.40 level amid concerns that Greece will default on its June 5th payment to the International Monetary Fund.
Below forecast German Producer Price data also took a toll on the common currency.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.4014
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trading in the region of 1.5534
GBP/EUR Gains on ECB QE Reports, GBP/USD Holds Decline after Upbeat US Data
Before the close of the European session the Pound recouped losses against the Euro in response to reports that the European Central Bank (ECB) intends to increase the size of its asset purchase programme.
The Pound rallied back above 1.39 despite the dampening impact of the day’s poor UK inflation data.
However, the Pound briefly fell below 1.55 against the US Dollar as US ecostats (for once) printed above expected levels.
US Building Permits increased by 10.1% on the month in April, smashing forecasts for an increase of 2.1%.
Similarly, Housing Starts surged 20.2% month-on-month rather than the 9.6% expected.
This sign of strength in the US housing sector lent the ‘Greenback’ support.
That support could be wiped out however if the minutes from the last Federal Open Market Committee meeting are dovish in tone.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trading in the region of 1.3912
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5518
Newsflash – GBP/EUR Falls Holds 1.38, GBP/USD Consolidates Losses as UK Enters Deflation
Although UK annual inflation had been forecast to print at 0.0% in April, it actually came in at -0.1% – marking the move into disinflation predicted by the Bank of England (BoE).
According to The Office for National Statistics; ‘This is the first time the CPI has fallen over the year since official records began in 1996 and the first time since 1960 based on comparable historic estimates. The largest downward contribution came from transport services – notably air and sea fares, with the timing of Easter this year a likely factor.’
The Pound Sterling to Euro (GBP/EUR) exchange rate went on to return to the day’s opening levels in spite of the ZEW economic sentiment surveys for Germany and the Eurozone showing steeper-than-predicted declines in sentiment.
Annual inflation in the Eurozone was shown to have held at 0.0%, as expected.
However, the Pound Sterling to US Dollar (GBP/USD) exchange rate extended previous declines to trend in the region of 1.5550
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3846
The Pound Sterling to Euro (GBP/EUR) exchange rate could advance to 1.40 later today if the UK’s Consumer Price Index shows an uptick in inflation: such a result would also drive the Pound Sterling to US Dollar (GBP/USD) exchange rate higher.
Pound Sterling to Euro Exchange Rate Forecast – GBP/EUR Advances to 1.39 Despite Rumours of a Greek Debt Deal, Eurozone Inflation and Confidence Reports Ahead
After trending in a fairly narrow range for much of Monday, the Pound Sterling to Euro (GBP/EUR) exchange rate surged before the close of trading to rise from 1.38 back above 1.39.
The upswing in the GBP/EUR exchange rate occurred even as Greek Finance Minister Yanis Varoufakis assured investors that Greece is days away from reaching a deal with its creditors.
The Pound Sterling to Euro (GBP/EUR) exchange rate hit a low of 1.3823
Concerns that the Hellenic nation will run out of funds before an agreement is reached, and consequently default on upcoming repayments, have put the Euro under serious strain in recent weeks.
However, after months of drawn out negotiations, backbiting and delays, it seems that progress may finally be being made.
Late on Monday Varoufakis asserted; ‘We are very close [to a deal.] I’d say it is a matter of one week. […] We will not default, and we won’t reach the point of not paying the International Monetary Fund. We contemplate actions leading to a breakdown, so that we can avoid a breakdown.’
These positive murmurs did little to support the Euro however and the common currency fell against a number of its peers.
With the Eurozone’s Consumer Price Index and the ZEW Economic Sentiment Surveys due for publication later today, further GBP/EUR exchange rate movement is likely.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast – US Dollar Gains Ahead of Housing Starts/Building Permits Reports and FOMC Minutes
The Pound Sterling to US Dollar (GBP/USD) exchange rate consolidated previous losses on Tuesday and fell back below the 1.56 level early in the European session.
Geopolitical tensions in the Middle East continue to bolster demand for the safe-haven US Dollar, and the currency was also benefiting from expectations that today’s US Housing Starts and Building Permits reports will show improvement.
The Pound Sterling to US Dollar (GBP/USD) exchange rate hit a high of 1.5670
Economists have forecast that Housing Starts increased by 9.9% in April on a month-on-month basis following the 2.0% gain recorded in March.
Similarly, March’s -5.4% decline in Building Permits is expected to be made up for by a 2.2% rise in April.
However, the US Dollar’s current rally could end abruptly if the minutes from the latest Federal Open Market Committee (FOMC) meeting – due for release tomorrow – are dovish in tone.
Hints from the FOMC that interest rate revisions could be delayed until the end of this year or the beginning of next would be unsurprising given the recent run of poor US ecostats but they would still weigh on the ‘Greenback’.
Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast: UK Inflation News to Drive Movement, but BoE Minutes Also Ahead
Today’s UK Consumer Price Index will play a major role in dictating the direction taken by both the Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates in the hours ahead.
The latest predictions see the UK’s CPI advancing by 0.4% on the month in April and holding at 0.0% on the year.
The core measure of inflation, which strips out volatile elements like food and fuel, is expected to print at 1.0%.
However, as the Bank of England (BoE) has repeatedly warned that the UK could slip into disinflation in the near future, there is a chance that today’s figures will come in below expected levels.
If that proved to be the case it would put the Pound under strain.
On the other hand, an increase in consumer prices would be Sterling-supportive and may push the GBP/EUR exchange rate to 1.40 and help the GBP/USD exchange rate recover the 1.56/1.57 level.
Investors with an interest in the Pound will also be looking ahead to tomorrow and the publication of minutes from the most recent Bank of England (BoE) policy meeting. Further Pound gains could be accrued if the minutes show that the Monetary Policy Committee (MPC) was split on the subject of interest rate revisions.
The Euro to Pound Sterling (EUR/GBP) exchange rate was trading in the region of 0.7182, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5567, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trading in the region of 0.6422, the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3917