The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.38 on Tuesday as Eurozone inflation data increased expectations that the European Central Bank will revised its growth forecast for the region higher when it is published on Wednesday.
The Pound Sterling to Euro (GBP/EUR) exchange rate touched a session low of 1.3705
Further gains for the Euro were held in check however, as market attention continued to focus on events in Greece. Greek Prime Minister Alexis Tsipras said that he has issued a ‘comprehensive proposal’ to the nation’s creditors as he runs out of time to secure vital bailout funds.
‘We have submitted a realistic plan for Greece to exit the crisis… and end divisions in Europe. We are not waiting for them to submit a proposal, Greece is submitting a plan – it is now clear that the decision on whether they want to adjust to realism… the decision rests with the political leadership of Europe,’ Tsipras said.
Athens could default if it fails to repay €300 million to the International Monetary Fund due on Friday.
The Pound Sterling to Hong Kong Dollar (GBP/HKD) exchange climbed to a session high of 11.9000
The Pound Sterling advanced against the Hong Kong Dollar on Tuesday as data out of the Asian state showed that retail sales fell in value of 2.2% in April from the previous year. The figure was weighed upon by a decline in the sale of jewellery and weaker visitor spending.
Retail sales volumes meanwhile increased 2.4% in April from the previous year, adding to the 0.8% increase recorded in the preceding month. Despite the rise, the figure disappointed as economists had been expecting a 5% increase.
‘The near-term retail sales performance will continue to hinge on inbound tourism growth, although the stable labour market conditions should render support to local consumer sentiment,’ said a government spokesperson.
The Pound Sterling to Singapore Dollar (GBP/SGD) exchange rate was trading in the region of 2.0697
The Pound advanced against the Singapore Dollar as the UK currency received support domestic data releases and risk aversion weighed upon riskier assets.
The Singapore Dollar could recover ground later in the session if the latest SIPMM Manufacturing PMI data comes in positively. Economists are expecting the PMI to rise from the 49.4 seen in April to 50.07 in May.
In a PMI, any figure above 50 indicates expansion whilst a number below indicates contraction.