The Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates began Wednesday’s European session trending higher as investors anticipated the Bank of England’s (BoE) APril meeting minutes; the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate fell.
Earlier… The Pound Sterling to Euro (GBP/EUR) and Pound Sterling to Canadian Dollar (GBP/CAD) exchange rates were both trending higher in Tuesday’s European trading, while the Pound Sterling to US Dollar (GBP/USD) exchange rate softened in an extremely quiet day for data.
However, the Euro could be in for further declines as speculation heats up over the nation’s financial status as it pulls money from local governments to keep the country afloat.
RBS: "Do not confuse a missed payment (or even default) with Grexit risk, which we think is still very unlikely" pic.twitter.com/vzeNTqTBGQ
— Katie Martin (@katie_martin_FX) April 21, 2015
Earlier… The Pound Sterling to Euro (GBP/EUR) exchange rate began Monday trending higher, while the Pound Sterling to Canadian Dollar (GBP/CAD) and Pound Sterling to US Dollar (GBP/USD) exchange rates were trending lower.
The Pound Sterling to Euro (GBP/EUR) exchange rate will have several opportunities for movement next week with ongoing negotiations between Greece and its creditors threatening to send the Euro plummeting at any moment.
Grexit Fears Rise as Greece Appears on the Cusp of Financial Devastation – Euro (EUR) Sensitive
With Greece now between a rock and a hard place, experts are suggesting the nation could be pushed into making a deal this week, or take one step closer to defaulting on its International Monetary Fund (IMF) repayments and potentially, a Grexit.
Why Greece will be holding fresh elections by the end of June, according to RBS: pic.twitter.com/bK4Nol0oOO
— Jamie McGeever (@ReutersJamie) April 20, 2015
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast
Monday’s relatively quiet for both the Eurozone and the UK by way of data and therefore investors are likely to look towards Tuesday’s high influence data from the Eurozone. The German and Eurozone ZEW Economic Sentiment Surveys are due out, as well as the German Current Situation Survey which are all expected to see major movement in the Euro to Pound Sterling (EUR/GBP) exchange rate.
Wednesday will be an interesting day for GBP/EUR currency pair with the Bank of England (BoE) due to publish its latest meeting minutes which will detail the exact numbers of voters for and against UK interest rate hikes at the April monetary policy meeting. The Eurozone Consumer Confidence number will also make an appearance on Wednesday which could cause moderate Euro exchange rate movement.
Thursday’s forecast to be a lot spicier when it comes to Euro to Pound Sterling (EUR/GBP) trading with the release of German and Eurozone Manufacturing, Services and Composite Purchasing Managers Indexes (PMI) out for release.
Friday will close the week with the German IFO Business Climate, Current Assessment and German Expectations figures.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast
The Pound Sterling to US Dollar (GBP/USD) exchange rate could be in for a few exciting days of movement such as Monday with the release of the Chicago Federal Reserve’s National Activity Index.
Furthermore, Wednesday’s US Existing Home Sales and MBA Mortgage Applications figure could be cause for US Dollar to Pound Sterling (USD/GBP) exchange rate movement, but investors are likely to look ahead to Friday’s US Durable Goods Orders stat which will be highly influential for the GBP/USD currency pair.
The March ecostat is expected to record 0.8% growth after February’s -1.4% contraction and could warrant a significant US Dollar exchange rate rally.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is forecast to have a relatively quiet week ahead with very few Canadian data releases due out. Tuesday will see the release of Canadian Wholesale Sales, while Wednesday’s Canadian Finance Minister Joe Oliver Presents the nation’s finance budget which could be an influential event for the ‘Loonie’ exchange rate.
Other than that, the Canadian Dollar will be extremely vulnerable to shocks in oil prices as crude oil is the nation’s largest commodity.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trading lower on Friday, while the Pound Sterling to US Dollar (GBP/USD) and Pound Sterling to Euro (GBP/EUR) exchange rates climbed.
Wednesday will see the release of US Crude Oil Inventories data, which is usually of mild importance, but as the current oil climate is so sensitive, could be regarded with high significance. If any oil price changes occur, the Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate could sink.
Any statements from the Bank of England (BoE), Federal Reserve, European Central Bank (ECB) or Bank of Canada (BOC) could influence major currencies and cause fluctuations in the GBP/EUR, GBP/CAD and GBP/USD exchange rates.