Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Fluctuate on Greek Geopolitical Developments
During Friday’s European session, the Pound Sterling to Euro (GBP/EUR) exchange rate dived by around -1.0%.
On Friday the Pound softened versus many of its currency rivals as a result of disappointing domestic data. Of particular detriment to demand for the UK asset was July’s Consumer Confidence Survey which dropped from 7 to 4. With several influential domestic publications due over the coming week, the Pound is likely to fluctuate versus its major peers. Trader focus will be dominated by the Bank of England (BoE) Interest Rate Decision and the BoE Inflation Report. Given that the BoE aren’t expected to change monetary policy at this juncture the rate decision will be less impactful. However, the Inflation Report will be significant to see if officials are still confident that inflation will pick up towards the close of the year.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4119 during Friday’s European session.
In contrast, the shared currency advanced on Friday after domestic data produced mostly positive results. Of particular significance was Eurozone Consumer prices which bettered estimates in July. However, many economists’ predict that the shared currency will resume depreciation over the coming week with geopolitical strains still weighing on Greece. Although there will be several influential domestic data publications over the coming week, the shared currency is most likely to be dominated by developments with regards to the Hellenic nation’s attempt to secure the third bailout package. The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within the range of 1.4090 to 1.4274 during Friday’s European session.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Fluctuate on Central Bank Rate Hike Bets
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within a limited range during Friday’s European session.
In addition to the Bank of England interest rate decision and the Inflation Report; the Manufacturing PMI, Construction PMI, Services PMI, Composite PMI, Nationwide House Prices, Industrial Production, Manufacturing Production, NIESR Gross Domestic Product Estimate, Visible Trade Balance, Trade Balance Non-EU and Total Trade Balance will all be of interest to those invested in the British asset.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5623 during Friday’s European session.
The US Dollar slumped on Friday after second-quarter Employment Cost failed to meet with expectations of a 0.6% increase, with the actual result only reaching 0.2%. Traders will be carefully scrutinising the coming week’s US data in the hope of clues as to the timing of a Federal Reserve rate increase. Change in Non-Farm Payrolls and Unemployment Rate will probably have the most significant impact on US Dollar movement. The ISM Non-Manufacturing Composite, Core Personal Consumption Expenditure and the ISM Manufacturing Survey will also influence US Dollar volatility over the coming week. The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within the range of 1.5546 to 1.5678 during Friday’s European session.