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GBP/EUR, GBP/INR and Exchange Rates Forecast to Trend within Narrow Ranges after UK Labour Data Disappointed, GBP/ZAR Climbs on Eskom

Pound Sterling Currency Forecast

Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Trend within a Limited Range amid Greek Deal Pessimism

The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within a limited range on Wednesday afternoon.

After British economic data printed poorly, the Pound softened versus the majority of its most traded currency rivals. British labour market data showed benefits claims rose by 7,000 in June, Unemployment rose from 5.5% to 5.6% in May, Employment Change declined by -67,000 in May, and Average Weekly Earnings failed to grow in line with economists’ projections.

The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4219.

The shared currency, meanwhile, declined versus many of its peers in response to mounting pessimism regarding the deal hashed out between Greek Prime Minister Alexis Tsipras and Eurogroup officials. The deal has already been questioned by the International Monetary Fund (IMF) who state that Greece’s debt is unsustainable at current levels and could reach 200% of the Hellenic nation’s gross domestic product. Greek MPs will decide whether to accept the deal later this evening.

The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within the range of 1.4143 to 1.4238 during Wednesday’s European session.

Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Trend within Tight Range despite Falling Crude Prices

The Pound Sterling to Indian Rupee (GBP/INR) exchange rate was trending within a tight range on Wednesday afternoon.

‘The soft tone of the latest UK labour-market figures will temper expectations of a near-term rate rise following yesterday’s relatively hawkish comments by some MPC members,’ said Vicky Redwood, an economist at Capital Economics in London. Although some ‘are clearly ready to start voting for a rate rise soon, we don’t think that the economic data are strong enough to push a majority toward one yet.’

The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 98.9010.

Despite the fact that crude oil prices have fallen significantly over the past week, with the potential to fall further after Iran’s nuclear deal was agreed, the Indian Rupee softened versus many of its major rivals. The Rupee’s depreciation can be linked to June’s Trade Balance which saw the deficit widen from $-10.4 billion to $-10.83 billion.

The Pound Sterling to Indian Rupee (GBP/INR) exchange rate was trending within the range of 98.8640 to 99.3410 during Wednesday’s European session.

Pound Sterling to South African Rand (GBP/ZAR) Exchange Rate Forecast to Strengthen on Eskom Woes

The Pound Sterling to South African Rand (GBP/ZAR) exchange rate strengthened by around 0.39% on Wednesday afternoon.

Although British wage growth failed to accelerate in line with the median market forecasts, average earnings still grew at the fastest pace in over five years. The mixed results from British labour market data makes it difficult for futures traders to assess the timing of a Bank of England (BoE) benchmark rate hike.

The Pound Sterling to South African Rand (GBP/ZAR) exchange rate is currently trending in the region of 19.3430.

South African economic data produced mixed results on Wednesday. On the year, May’s Retail Sales came in at 2.4%; failing to meet with the market consensus of 2.98% sales growth. However, on the month May’s Retail Sales climbed by 0.1%; bettering the median market forecast -0.32%. The Rand dived versus its major peers, however, amid continued issues with South Africa’s leading energy provider Eskom. Eskom implemented load shedding today as a result of failing to deal with increasing demand. The long-period of difficulty with Eskom has cost the South African economy a considerable sum.

The Pound Sterling to South African Rand (GBP/ZAR) exchange rate was trending within the range of 19.2360 to 19.3760 during Wednesday’s European session.

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