Last week, after a relatively steady start the Pound fluctuated against the US Dollar and Euro following the publication of minutes from the latest Bank of England policy meeting.
While the minutes revealed that all nine members of the Monetary Policy Committee were in agreement regarding holding the benchmark rate at a record low and leaving the rate of asset purchases unaltered, they also hinted at the possibility of UK unemployment dropping to 7 per cent more rapidly than expected – potentially altering the timeline for a BoE rate hike.
The GBP/EUR pairing is currently trading in the region of 1.1730
However, by Friday the Pound had recovered losses and risen to a three-week high against its North American rival as UK GDP data revealed that the British economy expanded at its most rapid rate since 2010 in the third quarter of the year.
The result, which was in line with economists’ expectations, helped the Pound consolidate gains against the Australian/New Zealand Dollars and extend its advance on the ‘Greenback’.
As European trading began this week the Pound was slightly stronger against the Euro as positive UK housing data and a quiet news day for the Eurozone lent the GBP/EUR pairing support.
However, some industry experts are envisaging a neutral-negative outlook for the British currency as Euro strength returns over the next five days on the back of encouraging unemployment/consumer confidence/retail sales reports for the 17-nation currency bloc and its largest economy.
UK CBI reported sales are also expected to have declined slightly this month, and if today’s data confirms that assessment the Pound could come under pressure as the European session continues.
While UK mortgage approvals and manufacturing PMI could limit Pound losses, more influential US and Eurozone reports are likely to drive movement in the British currency over the course of the week.
Current Pound Sterling (GBP) Exchange Rates:
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6201 >
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1730 >
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6843 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9481 <
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6172 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8526 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5934 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5137 >
Correct as of 10:15 GMT
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