The Pound Sterling to Euro (GBP/EUR), Pound Sterling to Swiss Franc (GBP/CHF) and Pound Sterling to Canadian Dollar (GBP/CAD) exchange rates could be in for an interesting day today with several influential events scheduled.
UPDATE: The Pound Sterling to Euro (GBP/EUR) exchange rate approached the close of Thursday’s session higher after European Central Bank President (ECB) Mario Draghi spoke and the Bank of England suggested that Greece may pose a threat to the UK economy.
The BoE stated: ‘There also remain significant risks in relation to Greece and its financing needs, including in the near-term’
‘Any of these risks could trigger abrupt shifts in global risk appetite that in turn might lead to a sudden reappraisal of underlying vulnerabilities in highly indebted economies, or sharp adjustments in financial markets.’
Earlier… Initially, the Pound Sterling to Euro (GBP/EUR) exchange rate softened in Thursday’s European trading after the German GfK Consumer Confidence Survey hit 10.0 in April from 9.7; economists had forecast a much smaller riser to 9.8.
However, the Pound may be able to reclaim some losses after UK Retail Sales came in much higher than predicted. The month of February recorded a 0.7% increase while the annual figure softened slightly from a positively revised 5.9% to 5.7%. Forecasts had suggested as much larger drop to 4.6% would occur.
Meanwhile, the Swiss Franc rose against other majors including the Pound Sterling (CHF/GBP) as safe-haven demand increased on account of conflict in Saudi Arabia and Yemen. The US Dollar to Swiss Franc (USD/CHF) exchange rate slipped by over 1.0% on Thursday.
Foreign exchange strategist Jeremy Stretch commented: ‘The news flow out of Yemen is causing a risk-off move.’
Swiss National Bank (SNB) board member Fritz Zurbugg will be speaking later in Thursday’s session which could influence the Swiss Franc to Pound Sterling (CHF/GBP), Swiss Franc to Euro (CHF/EUR) and Swiss Franc to Canadian Dollar (CHF/CAD) exchange rates.
The Canadian Dollar also enjoyed some support in Thursday’s trading session when the price of oil rose after Saudi Arabia launched air strikes in Yemen. The conflict pushed WTI oil up to $51 a barrel.
Industry expert Kim Woo-kyung commented: ‘Yemen is not a big supplier of oil… This could help move oil prices partly, but we don’t see this will disrupt actual oil supply.’
Pound Sterling Exchange Rate Forecast: GBP/EUR, GBP/CHF, GBP/CAD
The Pound Sterling to Euro (GBP/EUR), Pound Sterling to Swiss Franc (GBP/CHF) and Pound Sterling to Canadian Dollar (GBP/CAD) exchange rates are expected to fluctuate heavily on Friday with Bank of England (BoE) Governor Mark Carney, chief economist Andrew Haldane and Deputy Governor Ben Broadbent all scheduled to speak.
Still to come in Thursday’s European session is US Initial Jobless Claims and Continuing Claims stats, Markit’s US Services and Composite Purchasing Managers Indexes (PMI) and other central bank speeches.
European Central Bank (ECB) President Mario Draghi is expected to speak in Italy later in Thursday’s trading while Bank of Canada (BOC) Governor Stephen Poloz is also scheduled to talk.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is residing at 1.4340. The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is reaching 1.8561. The Euro to Swiss Franc (EUR/CHF) exchange rate is trading at 1.0486. The Pound Sterling to Euro (GBP/EUR) exchange rate is trending in the region of 1.3702.