Newsflash – Confidence Dips, Sterling Slides
An unexpected drop in the level of UK Consumer Confidence left the Pound Sterling to Euro (GBP/EUR) exchange rate trending in a softer position on Friday.
The gauge came in at 1 in May, down from 4 in April and defying expectations for stagnation.
The fact that German retail sales increased by more-than-expected on the month in April also weighed on GBP/EUR trading.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3948
Newsflash – Sterling Extends Declines, UK Economy Expands by Less-than-Expected
With the UK’s first quarter growth data failing to show the positive quarterly and annual revisions expected by economists, the Pound fell against a number of its most-traded currency counterparts on Thursday.
One industry expert said of the growth data; ‘It confirms the picture of somewhat weaker growth in the first quarter than in recent ones. But no single quarter’s figures should be given undue weight.’
The GBP/EUR exchange rate was also pressured lower as the Eurozone issued some encouraging sentiment measures.
Both tomorrow’s GfK UK Consumer Confidence Index and German Retail Sales numbers are likely to impact the direction taken by the GBP/EUR pairing.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3992
Newsflash – Pound Lower before UK GDP Report
Although the reports were later disputed by European officials, assertions from Greece that the nation is close to reaching a bailout agreement with its creditors saw the Pound fall from a 2 1/2 month high against the Euro on Thursday.
Sterling was also trending in a softer position against the US Dollar as a result of improved Federal Reserve interest rate hike bets.
However, if today’s UK first quarter growth numbers show the positive revisions expected by economists Sterling could recoup losses as the day progresses.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4049
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5368
The Pound Sterling to Euro (GBP/EUR) exchange rate remained trending in the region of 1.41 in spite of positive German data as the prospect of Greece exiting the Eurozone piled pressure on the common currency.
Pound Sterling to Euro Exchange Rate News – UK Retail Sales Data Boosts Pound to 2 1/2 Month High, Euro Pressured by Grexit Fears
On Wednesday the Pound Sterling to Euro (GBP/EUR) exchange rate achieved a 2 ½ month high, taking it close to its best levels of 2015, as comments from various Greek officials heightened Grexit concerns.
While Finance Minister Yanis Varoufakis stressed that further austerity isn’t the answer to Greece’s financial woes, the Interior Minister asserted that the Hellenic nation’s next debt instalment to the International Monetary Fund (IMF) won’t be repaid.
Nikos Voutsis stated; ‘The instalments to the IMF in June, starting from June 5 to June 19, amount to 1.6 billion Euros. The money will not be given. There is no money to repay the instalments.
Furthermore, Greek Energy Minister Panagiotis Lafazanis used a ruling party meeting to weigh up the pros and cons of a Grexit.
The Pound, meanwhile, was supported by a better-than-forecast Reported Sales figure from the Confederation of British Industry (CBI).
The index had been expected to rise from 12 to 20 in May but it actually surged all the way to 51. This proof of robust consumer spending was Pound-positive.
The Pound Sterling to Euro (GBP/EUR) exchange rate achieved a high of 1.4153
Euro to Pound Sterling Exchange Rate Forecast – EUR/GBP Fails to Rebound on Improved German Confidence Data
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7077 on Wednesday and was only able to secure a very modest gain following the release of surprisingly upbeat German Confidence data.
The EUR/GBP pairing advanced by just 0.1% after the German sentiment gauge for June was shown to have risen to 10.2 from 10.1 rather than falling to 10.0.
As the result was a 13 1/2 year high, it bolstered investor sentiment somewhat.
According to GfK; ‘Very strong domestic demand in Germany and the low rate of inflation are fuelling economic expectations and consumers’ willingness to spend.’
The Euro to Pound Sterling (EUR/GBP) exchange rate hit a low of 0.7062
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Gains as Fed asserts Interest Rate Revisions Could Slow if Global Growth Forecasts Decline
While the Pound Sterling to US Dollar (GBP/USD) exchange rate lost nearly a cent on Wednesday as investors responded to improved Federal Reserve interest rate hike bets, the pairing returned to trending above 1.54 in response to comments from the Fed’s Vice Chairman.
Stanley Fischer asserted that slowing global growth could result in more gradual rate revisions in the US and that policymakers would be monitoring the situation closely.
Fischer noted; ‘If foreign growth is weaker than anticipated, the consequences for the US economy could lead the Fed to remove accommodation more slowly than otherwise.’
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast – UK Growth Data, Eurozone Confidence Figures Ahead
While the Greek situation will continue to impact the direction taken by the Pound Sterling to Euro (GBP/EUR) exchange rate in the days ahead, Thursday also sees the publication of some key UK and Eurozone data.
The UK is set to release first quarter growth figures, with both the quarterly and annual numbers predicted to show positive revisions.
On a quarter-on-quarter basis, the UK economy is believed to have expanded by 0.4% (rather than the 0.3% initially predicted) and on a year-on-year basis growth is expected to have increased from 2.4% to 2.5%.
If these estimations prove accurate they could bolster the Pound against the Euro.
Meanwhile, Germany’s Import Price Index is forecast to show a month-on-month increase of 0.5% in April and a year-on-year decline of -0.7%.
This data will be followed by a run of confidence reports for the currency bloc.
Economists anticipate a dip in the Economic Confidence gauge but improvement in both the Industrial Confidence Index and Eurozone Business Climate Indicator.
Services and Consumer Confidence are expected to remain unchanged.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5413, the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9161, the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7079 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4125.