After the UK’s Manufacturing PMI fell short of forecasts, the Pound fluctuated against a number of its peers, with the Pound Sterling to Indian Rupee (GBP/INR) exchange rate falling and the Pound Sterling to South African Rand (GBP/ZAR) and Pound Sterling to Swiss Franc (GBP/CHF) exchange rates posting modest gains.
Pound Sterling to Indian Rupee Future Currency Forecast: Greek Default, Indian & UK Manufacturing Data Impacts GBP/INR Exchange Rate Today
As the news that Greece effectively defaulted on its repayment to the International Monetary Fund (IMF) triggered a slide in oil prices, the emerging-market Rupee was able to advance and the Pound Sterling to Indian Rupee (GBP/INR) exchange rate declined accordingly.
The GBP/INR exchange rate dropped to a low of 99.4450 (down 0.3% on the day) as the UK’s Manufacturing PMI failed to show the acceleration in output expected by economists.
The Pound continued trending in a slightly softer position against the Indian Rupee despite the fact that India’s own manufacturing numbers were less-than-impressive.
India’s HSBC Manufacturing PMI printed at 51.3 in June, down from 52.6 in May and less than the 51.9 forecast.
Economist Pollyanna De Lima said of the result; ‘Following the pick up in the growth rates for output and new orders seen in May, June PMI data pointed to a slowdown in India’s economic upturn. New business expanded at a noticeably weaker pace, in part reflecting a loss of momentum in export business. Moreover, manufacturers remained in cautions spirits and employment numbers were unchanged once again.’
The Rupee also ended the local session higher against the US Dollar.
We can expect further movement in the Pound Sterling to Indian Rupee (GBP/INR) exchange rate on Friday when both India and the UK release their Services PMIs. The gauge of India’s services sector is believed to have risen ever-so-slightly last month, edging up from 49.6 to 49.69.
South African Rand (ZAR) Trims Trade Surplus Gains, GBP/ZAR Advances on Greek Worries, Confidence Data Ahead
On Tuesday the Pound Sterling to South African Rand (GBP/ZAR) exchange rate plummeted as the Rand rallied across the board in response to unexpectedly upbeat trade data for South Africa.
The nation had been expected to record a deficit in May, but actually achieved a 5 billion Rand surplus thanks to a 4.6% rise in exports and 7.4% decline in imports.
However, the GBP/ZAR pairing has since recouped some of these losses despite the UK’s disappointing manufacturing ecostat.
The news that Germany refuses to discuss a new bailout agreement with Greece until after the referendum weighed on the common currency and as the Rand tracks the Euro that asset also fell.
A better-than-forecast US ADP employment change report further reduced demand for higher-risk assets later in the session.
In the view of one local trader; ‘It is possible that we could see further strengthening of the Rand on the back of [yesterday’s] trade data, but in my opinion this merely offers better levels to accumulate Dollars.’
Tomorrow’s South African KAGISO Manufacturing PMI and Consumer Confidence report have the potential to inspire additional shifts in the GBP/ZAR pairing.
Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Trending Higher after SNB Intervention, Despite Manufacturing PMI Beating Forecasts
In recent weeks the geopolitical uncertainty in Greece has seen demand for the safe-haven Swiss Franc spike and on Sunday it was reported that the Swiss National Bank (SNB) intervened in the currency market in order to prevent the Franc climbing too high.
However, the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate was able to rise 0.5% on Wednesday to achieve a high of 1.4797.
Although the situation in Greece is far from resolved, the Franc posted broad-based declines amid reports that the Greek Prime Minister is prepared to compromise on ‘electoral red lines’ in order to secure aid.
The day’s only Swiss ecostat, the SVME Manufacturing PMI, printed more strongly than expected but still failed to lend the Franc much support.
The manufacturing measure climbed from 49.4 to 50 in June, taking it right to the line separating growth from contraction.
A reading of 49.79 had been expected.
Swiss data is in short supply for the rest of the week but investors will be looking ahead to next week and the publication of Switzerland’s inflation rate and unemployment numbers.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate was trending in the region of 99.5490, the Pound Sterling to South African Rand (GBP/ZAR) exchange rate was trending in the region of 19.0850 and the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate was trending in the region of 1.4737
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