The Pound Sterling to Euro (GBP/EUR) exchange rate declined in the first half of Tuesday’s European session as confidence in the Greek situation rose, while the Pound Sterling to US Dollar (GBP/USD) exchange rate climbed after UK Industrial Production increased.
Industrial output in the UK up 0.5% on a monthly basis in March, strongest increase since September 2014 (+0.7% y/y)
— Markit Economics (@MarkitEconomics) May 12, 2015
UK Industrial Production Increase Bolster Pound Sterling to US Dollar (GBP/USD) Exchange Rate, Reaching a Three-Month High
It was initially forecast that UK Industrial Production would stagnate at 0.1% on the year in March, but instead the ecostat surprised by climbing to 0.7%, recording the biggest monthly gain since September.
Economist Vicky Redwood commented: ‘The industrial sector may have turned the corner, no doubt helped by the lower oil price. We remain hopeful that we should see at least a little rebalancing of the economy this year.’
The Bank of England’s (BoE) inflation report is due out on Wednesday and could cause some major GBP/EUR and GBP/USD exchange rate movement. Economists are forecasting the BoE to be rather hawkish in its outlook.
— Joshua Raymond (@Josh_CityIndex) May 12, 2015
Euro to Pound Sterling (EUR/GBP), US Dollar (EUR/USD) Exchange Rates Recover as Greek IMF Payment Takes Place, German and Eurozone GDP Ahead
Meanwhile, the Euro to Pound Sterling (EUR/GBP) and Euro to US Dollar (EUR/USD) exchange rates were both buoyant in Tuesday’s European trading after Greece made its latest International Monetary Fund (IMF) debt repayment. However, Greece used emergency reserves in its International Monetary Fund (IMF) account to make the payment.
One Greek official stated: ‘We made use of money in our holding account in the fund. The government also used about 100 million of its cash reserves.’
However, the Euro exchange rate could tumble in coming weeks as Greek finance minister Yanis Varoufakis has suggested that the nation is on the precipice of running out of funds, perhaps with only enough liquidity to last a few weeks.
Meanwhile, Wednesday’s going to be an influential day of trading for the Euro to Pound Sterling (EUR/GBP) and Euro to US Dollar (EUR/USD) exchange rates with the release of highly significant ecostats.
French, German and Eurozone Gross Domestic Product (GDP) data will all emerge on Wednesday, offering the Euro exchange rate plenty of opportunity to move. The seasonally adjusted German GDP stat is forecast to fall from 1.4% to 1.2% in the first quarter of 2015, while the Eurozone ecostat is predicted to climb from 0.9% to 1.0%.
US Data Forecast to Cause US Dollar to Pound Sterling, (USD/GBP), Euro (USD/EUR) Exchange Rate Movement – is US Economic Growth Easing?
Across the Atlantic, the US economy will also reveal an interesting ecostat on Wednesday with the release of US Advance Retail Sales. The ecostat is forecast to rise by 0.2% in the month of April after the previous month’s 0.9% growth.
Additionally, Federal Reserve officials are scheduled to make statements throughout the week, which could cause some USD/EUR and USD/GBP movement.
Market News International (MNI) has forecast Eurozone growth to strengthen while indicating that US growth is likely to ease.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is trending in the region of 1.5670. The Pound Sterling to Euro (GBP/EUR) exchange rate is trending at 1.3949.