Pound Sterling (GBP) Gains on Euro (EUR), Struggles against US Dollar (USD)
With the latest development in the Greek bailout negotiations keeping the Euro under pressure, the Pound Sterling to Euro (GBP/EUR) exchange rate was able to advance by around 0.7% on Tuesday to trade in the region of 1.3766.
However, the Pound Sterling to US Dollar (GBP/USD) exchange rate was left trading at 1.4765 despite the UK releasing stronger-than-expected growth data for the fourth quarter of last year.
The GfK Consumer Confidence measure also surged to a 12-year high, but demand for the safe-haven ‘Greenback’ prevented the Pound from positing gains ahead of today’s US Consumer Confidence report.
GBP/EUR, GBP/USD Exchange Rate News: Pound Broadly Softer before Confidence Data
As the European session progressed on Monday, both the Pound Sterling to Euro and Pound Sterling to US Dollar exchange rates declined.
While the Euro was bolstered by improved confidence indexes for the Eurozone and higher inflation data for Germany, the US Dollar rallied after Personal Consumption Expenditure printed above forecast levels during North American trading.
Tomorrow’s GfK Consumer Confidence index could help the Pound claw back losses if sentiment is shown to have improved.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3628.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trading in the region of 1.4784.
Pound Sterling to Euro (GBP/EUR) Exchange Rate News: Greek Reform Proposals Bolster Euro
At the very close of last week, the Greek government presented a list of reforms to its creditors in the hopes of securing additional funding before the nation runs out of money on April 8th.
The development lent the Euro support and the GBP/EUR pairing dipped below 1.37.
However, the Pound has advanced by around 0.3% this morning ahead of the release of UK Consumer Credit data and the Eurozone’s run of confidence gauges.
If the Eurozone’s sentiment reports fail to show the improvement expected, the GBP/EUR exchange rate could trend higher in the hours ahead.
The Pound Sterling to Euro (GBP/EUR) exchange rate is trading in the region of 1.3690
The Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates gained on Friday after Bank of England (BoE) Governor Mark Carney implied that interest rate hikes are coming.
The British asset had softened against both the common currency and the ‘Greenback’ earlier in the week as the UK’s inflation data came in at a record low of 0%, ‘Grexit’ concerns eased and the US published a number of upbeat reports (including inflation, services and manufacturing data).
The rate of US inflation was shown to have increased from -0.1% to 0.0%.
After hitting a high of 1.42 earlier in the month, the GBP/EUR pairing steadily lost seven cents to brush a low of 1.35.
However, Sterling staged a rebound after BoE Governor Mark Carney asserted that the next move for UK interest rates was higher while his deputy dismissed domestic deflation concerns.
The Pound gained by 0.4% against the Euro and 0.25% against the US Dollar, with the GBP/USD strength being supported by the news that the US economy expanded at a slower-than-forecast rate in the fourth quarter of last year.
Economists had anticipated that the pace of growth in the final three months of last year would be upwardly revised from 2.2% to 2.4%, but this proved not to be the case.
Pound Sterling to Euro (GBP/EUR) Exchange Rate News: Greek Negotiations Continue, UK PMIs Ahead
The Pound Sterling to Euro (GBP/EUR) exchange rate was briefly able to surge to a high of 1.3760 on Friday amid concerns that controversial Greek Finance Minister Yanis Varoufakis was resigning his post at a crucial point in the Greek bailout negotiations.
Gains were later tempered as officials asserted that these rumours were ‘far from reality’.
The Pound Sterling to Euro (GBP/EUR) exchange rate hit a high of 1.3760 on Friday.
Next week the direction taken by the Pound Sterling to Euro (GBP/EUR) exchange rate could be down to how a number of ecostats for both the UK and Eurozone print.
If the UK’s Confidence and growth data, along with the region’s Manufacturing and Services PMIs, support the case for sooner rather than later UK rate hikes, the Pound could rally against its rivals and recoup more of its recent decline against the Euro.
That being said, should the Eurozone’s data continue the recent trend of coming in above forecast, it may prevent the Pound from exerting itself too strongly.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate News: US Fed Rate Bets to Impact ‘Cable’
The Pound Sterling to US Dollar (GBP/USD) exchange rate fell on Thursday after a Fed official asserted that now is the time to start raising borrowing costs in the US.
A stronger-than-projected US Services PMI also aided the ‘Greenback’s uptrend.
However, the GBP/USD pairing briefly returned to the 1.49 level on Friday as the US released disappointing growth data and various BoE officials backed the prospect of higher UK interest rates.
The Pound Sterling to US Dollar (GBP/USD) exchange rate hit a hit of 1.4922 on Friday
With US employment figures due out at the tail end of next week, considerable GBP/USD volatility could be on the cards.
Before the Non-Farm Payrolls report is published, GBP/USD fluctuations may be caused by the US Personal Consumption, Consumer Confidence, ISM Manufacturing and Trade Balance stats.
Any reports which up the odds of a June rate adjustment would be US Dollar supportive.
Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) Exchange Rates Forecast to Fluctuate on US Non-Farm Payrolls, Greek Concerns
An uptrend in the Pound Sterling to Euro (GBP/EUR) exchange rate could also be caused by a breakdown in the negotiations between Greece and its creditors.
The nation is expected to present a list of workable reforms in the near future, but if no such list appears before Greece runs out of funds on April 8th, ‘Grexit’ worries will resurface and demand for the Euro could fall.
As highlighted above, the US Non-Farm Payrolls number will be pivotal for the Pound Sterling to US Dollar currency pair in the days ahead. Economists are currently predicting that the US added 250,000 positions in March, resulting in a static unemployment rate of 5.5%.
Should the data come in below forecast, the Pound may potentially return to trending above the key support level of 1.50. Conversely, better-than-expected figures may push the GBP/USD pairing to fresh lows.
The US ADP employment change number (published earlier in the week) can sometimes indicate whether the NFP report will over or under perform.
At the close of the week the Euro to Pound Sterling (EUR/GBP) exchange rate was trading in the region of 0.7298 the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.4910, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trading in the region of 0.6704, the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3696