Although Sterling advanced on its peers this morning following the release of stronger than anticipated UK industrial production figures, the British currency went on to pare gains against the Euro as investors look ahead to tomorrow’s Bank of England inflation report.
The Pound Sterling to Euro Exchange Rate was in the region of 1.1582 as of 10:40 GMT
1 Euro is currently worth 0.8654 pence
The common currency was also supported by surprisingly positive German factory orders figures.
Before the UK NIESR GDP estimate for July was published, Sterling slipped to 86.62 against the Euro and faltered against the US Dollar.
As currency strategist Michael Sneyd observed: ‘Going into the inflation report we favour being positioned bearish on the Pound. Not only are [the BoE] likely to implement forward guidance, they are also likely to implement thresholds or give a positive spin on their assessment of thresholds in such a way to suggest that they could be introducing [them in the future]’.
The GBP/EUR exchange rate hit a low of 1.1521
However, the Pound clung on to the 1.53 level against the US Dollar after NIESR revealed its initial estimate for UK growth in July.
GDP expansion of 0.7 per cent has been forecast, compared with the 0.6 per cent gain estimated.
In a statement issued with the data NIESR said that the result is indicative of ‘a narrowing of the UK’s large negative output gap. Consumer spending growth has underpinned the recent gains in economic momentum in spite of the continued decline of real consumer wages.’
Tomorrow GBP/EUR fluctuations are likely to occur in reaction to the UK’s BoE inflation report and German industrial production data.
Current Pound Sterling (GBP) Exchange Rates:
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5350 <
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1546 <
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.7140 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9560 <
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6515 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8662 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5832 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5131 >
(As of 15:35 GMT)
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