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Pound Sterling to Euro (GBP/EUR), Malaysian Ringgit (GBP/MYR) Exchange Rates Lower, Japanese Yen (GBP/JPY), Singapore Dollar (GBP/SGD) Climbing After Data

The Pound Sterling to Euro (GBP/EUR) and Pound Sterling to Malaysian Ringgit (GBP/MYR) exchange rates were both trading lower in Friday’s European session while the Pound Sterling to Singapore Dollar (GBP/SGD) and Pound Sterling to Japanese Yen (GBP/JPY) exchange rates were trending higher.

Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast

The Pound Sterling to Euro (GBP/EUR) exchange rate declined on Friday after German IFO figures emerged. The German IFO Business Climate rose to 108.6 in April from the previous 107.9.

Furthermore, the German IFO Current Assessment figure hit 113.9 from the former month’s 112.1. However, the IFO German Expectations figure fell out of line with forecasts, slipping from 103.9 to 103.5 in April, rather than rising to 104.5 as predicted.

Economist Aline Schuiling commented: ‘I’m quite optimistic about the German economy—the lights are on green, the Euro is low, energy prices have dropped. The biggest source of uncertainty for Europe at the moment is the situation in Greece—that could create some disruption if it doesn’t evolve as we all hope.’

The ongoing situation between Greece and its creditors has caused fluctuations in the Euro exchange rate and if negotiations continue on for months, the Euro to Pound Sterling (EUR/GBP) exchange rate may continue to weaken.

Friday will see Eurozone finance ministers in talks and any developments could influence the Euro exchange rate.

Pound Sterling to Japanese Yen (GBP/JPY) Exchange Rate Forecast

The Pound Sterling to Japanese Yen (GBP/JPY) exchange rate advanced after Japanese data and Bank of Japan (BOJ) statements. The day began with Japan’s Corporate Service Price slipping from 3.3% to 3.2% on the year in March.

Then Japan’s All Industry Activity Index recorded 0.1% growth in February rather than contracting by -1.0% as forecast.

Bank of Japan Deputy Governor Hiroshi Nakaso commented on the importance of infrastructure investment in an attempt to make the market less vulnerable to any global shocks.

Nakaso commented: ‘There are still some Asian economies where insufficient infrastructure is bottlenecking industrial advancement. Infrastructure investment is a stimulus not only for domestic demand, but would also attract investment by foreign firms.’

Pound Sterling to Malaysian Ringgit (GBP/MYR) Exchange Rate Forecast

The Pound Sterling to Malaysian Ringgit (GBP/MYR) exchange rate declined as the Ringgit gained with other emerging Asian currencies amid speculation that the US Federal Reserve may delay interest rate hikes.

Foreign exchange strategist Khoon Goh commented: ‘Should the US data stay weak and the Fed sound more dovish, then further USD weakness will ensue, leading to more Asian currency strength.’

The rebound in the Malaysian Ringgit saw it reach a near two-month high against the US Dollar (MYR/USD) as oil price gains increased investor sentiment.

Pound Sterling to Singapore Dollar (GBP/SGD) Exchange Rate Forecast

The Pound Sterling to Singapore Dollar (GBP/SGD) exchange rate was offered some support on Friday when Singapore’s Industrial Production figures were released. Although the month of March recorded 1.2% growth and February’s number was positively revised to 4.4%, the annual ecostat slipped further into contraction territory at -5.5%.

Furthermore, the previous month’s figure was negatively revised lower to -3.3%; economists had expected more declines in March and had forecast the stat to drop further to -5.9%.

The Singapore Dollar exchange rate has been subject to much speculation this year and experts have found it extremely unpredictable.

Industry expert Charlie Chan commented: ‘The Singapore Dollar was oversold and has room to appreciate. It is illogical to expect the MAS [Monetary Authority of Singapore] to do something again so soon after an inter-meeting decision to ease in January.’

The Pound Sterling to Singapore Dollar (GBP/SGD) exchange rate is reaching 2.0193. The Pound Sterling to Malaysian Ringgit (GBP/MYR) exchange rate resides at 5.4097. The Pound Sterling to Japanese Yen (GBP/JPY) exchange rate is trending in the region of 180.5600; the Pound Sterling to Euro (GBP/EUR) exchange rate is trading at 1.3896.