The Pound Sterling to Euro (GBP/EUR) and Pound Sterling to Swiss Franc (GBP/CHF) exchange rates both advanced in Thursday’s European session while the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate remained in a narrow range.
The Euro exchange rate has come under significant pressure as Greek negotiations continue with little result and the effect of lethargy spirals out to other areas of the economy. Credit ratings agency Standard & Poor’s downgraded Greece’s sovereign rating on Thursday and warned that the economy could worsen significantly if negotiations don’t end soon.
Furthermore, Greece approached the International Monetary Fund (IMF) in an attempt to delay loan repayments but the request was shot down, placing further pressure on Greece to either make a deal or default on repayments.
Swiss Franc (CHF) Exchange Rate Little Affected by Swiss Producer and Import Prices Surprise
Meanwhile, the Swiss Franc continued to trend lower despite Producer and Import Prices rising for the first time in 10 months. The unexpected rise was accredited to higher values in petroleum products.
The month of March recorded 0.2% growth after February’s -1.4% but was forecast to remain flat at 0.0%. Therefore, the annual March ecostat rose from -3.6% to -3.4% rather than contracting further into negative territory to -3.7% like economists had predicted.
The Swiss Franc could be in for some additional movement on Friday with the release of March’s Swiss Retail Sales stat. The February ecostat resided at -0.3% on the year.
Meanwhile, the Canadian Dollar gained in Wednesday’s North American session to climb almost 2 cents versus the US Dollar (CAD/USD) as investors forecast oil production was reaching its peak.
Furthermore, the Canadian Dollar to US Dollar (CAD/USD), Canadian Dollar to Pound Sterling (CAD/GBP) and Canadian Dollar to Euro (CAD/EUR) exchange rates were offered some support when the Bank of Canada (BOC) advocated to leave interest rates on hold in April rather than implementing another 25 basis point cut, as it did at the start of the year.
However, the Canadian Dollar is forecast to have an interesting day of trading on Friday with the release of the Bank of Canada’s (BOC) Consumer Price Index (CPI). The BOC has predicted inflation will remain at 2.1% on the year in March, which could offer the ‘Loonie’ exchange rate some stability.
Pound Sterling (GBP) Exchange Rate Forecast: GBP/EUR, GBP/CHF, GBP/CAD
The Pound Sterling exchange rate is gearing up for an influential day of movement on Friday with the eagerly anticipated UK labour market figures due for release. The UK’s Average Weekly Earnings, Unemployment Rate and Employment Change ecostats will all be out and have the capacity to cause major Pound Sterling to Canadian Dollar (GBP/CAD), Pound Sterling to Swiss Franc (GBP/CHF) and Pound Sterling to Euro (GBP/EUR) exchange rate movement.
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is residing at 1.8285. The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is trading at 1.4392; the Pound Sterling to Euro (GBP/EUR) exchange rate is trending in the region of 1.3943.
