GBP/EUR Conversion Rate Predicted to Advance after UK Construction Output Betters Estimates
The Pound Sterling to Euro (GBP/EUR) exchange rate advanced by around 0.1% on Friday afternoon.
The solitary British economic data publication on Friday produced a positive result which allowed the Pound to trend higher versus its major peers. The Markit Construction PMI advanced beyond the median market projection of 57.3 to 57.5, with the actual result climbing to 59.9. The British asset also found support after China’s equity market showed signs of stability following the third consecutive day of share price increases.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3509.
European economic data fared much worse than that of its British counterpart. Eurozone Producer Prices contracted beyond expectations on both an annual and a monthly basis. This only fuelled inflation concerns in the Euro-area with the majority of analysts predicting the European Central Bank (ECB) will have no choice but to attempt to stimulate price pressures. Additional Euro losses can be linked to the EUR/USD negative correlation after the US Dollar rallied overnight to hold a comparatively strong position.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within the range of 1.34258 to 1.3597 during Friday’s European session.
GBP/USD Conversion Rate Predicted to Rally after US Labour Data Dissapoints
The Pound Sterling to US Dollar (GBP/USD) exchange rate ticked higher by around 0.5% on Friday afternoon.
In response to the robust figure, Tim Moore, Senior Economist at Markit stated; ‘Construction firms enjoyed a strong finish to the third quarter of 2015, as a sustained rebound in new development projects continued to have an impact on the ground. Moreover, September data suggests that the UK construction sector is still experiencing its most intense cycle of job hiring for at least 15 years, and consequently skill shortages remain a dominant concern across the industry. Residential building saw the most decisive momentum shift in September, hitting a one-year high in the process, while commercial development also picked up speed as rising business investment and improving UK economic conditions acted to bolster demand. A growth spurt for civil engineering activity completed the hat-trick of positive news for the main construction sub-sectors in September, helped by robust pipelines of infrastructure work.’
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5219.
US Change in Non-Farm Payrolls printed particularly poorly on Friday which caused the US asset to decline versus its major peers. Non-Farm Payrolls were expected to see 201,000 newly employed in September, but the actual result only saw 142,000. This weighed on bets regarding the timing of a Federal Reserve interest rate hike which ultimately caused the ‘Greenback’ (USD) to dive versus its major peers.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within the range of 1.5133 to 1.5238 during Friday’s European session.