The Euro to Pound Sterling (EUR/GBP) exchange rate fell in Thursday’s European trading while the Euro to US Dollar (EUR/USD) and Euro to Indian Rupee (EUR/INR) exchange rates advanced after upbeat GfK German Consumer Confidence data emerged.
The GfK sentiment index rose from 9.7 to 10.0 in April, despite forecasts to increase only slightly to 9.8.
The Pound Sterling exchange rate was offered some support on Thursday when UK Retail Sales printed favourably.
Economists had expected stagnation in the month of February, but the actual ecostat recorded 0.7% growth. The annual figure was supported quite significantly; economists revised January’s reading to 5.9% and therefore the February number softened just slightly to 5.7%, rather than the forecast 4.6%.
British Chambers of Commerce chief economist David Kern commented: ‘Although these figures are good news and will strengthen confidence, we must remember that the UK’s economic growth remains unbalanced and is too reliant on consumer spending.’
‘UK exporters are still facing huge challenges, particularly in the Eurozone, which is our largest trading partner.’
Meanwhile, the US Dollar exchange rate softened broadly after weak US Durable Goods Orders figures emerged on Wednesday. The February ecostat contracted by -1.4% rather than recording 0.2% growth as forecast.
Federal Reserve Rate Hikes Influence US Dollar (USD) Exchange Rate Forecast
In addition, Federal Reserve official James Bullard spoke on Thursday suggesting that the Federal Reserve shouldn’t delay in hiking interest rates—a reiteration of views expressed earlier in the week. However, not even that could shake the US Dollar exchange rate out of its rut.
The Indian Rupee fell against the US Dollar (INR/USD) on Thursday as demand for US Dollars increased toward the end of the month. Importer demand for ‘Bucks’ rather than Rupee’s pressured the currency lower after a seven-day winning surge.
With little Indian data out this week, the Indian Rupee is susceptible to global developments for movement.
Euro Exchange Rate Forecast: EUR/GBP, EUR/USD, EUR/INR
The Euro exchange rate could fluctuate significantly in Thursday’s European session with European Central Bank (ECB) President Mario Draghi scheduled to speak later in the afternoon.
Furthermore, US Initial Jobless Claims and Continuing Claims ecostats will be out later in the session along with Markit’s US Services and Composite Purchasing Managers Indexes (PMI) which could shake the EUR/USD exchange rate significantly.
The Euro to US Dollar (EUR/USD) exchange rate is residing at 1.1018. The Euro to Pound Sterling (EUR/GBP) exchange rate is trading at 0.7375. The Euro to Indian Rupee (EUR/INR) exchange rate is trending in the region of 69.0020.
