The Pound Sterling to Euro (GBP/EUR) exchange rate was trending lower in Thursday’s European trading after Eurozone retail sales data printed favourably, while the Pound Sterling to US Dollar (GBP/USD) and Pound Sterling to Thai Baht (GBP/THB) exchange rates climbed ahead of the Bank of England’s (BoE) interest rate decision.
Thai Baht (THB) Slips against Pound (GBP) as Thai Confidence Falls
The Thai Baht (THB) suffered losses on Thursday when the Thai Consumer Confidence index slipped further into pessimism, coming in at 75.6 in May. The index had previously resided at 76.6 and economists had forecast a smaller slip to 76.4. Thursday’s tumble marks the fifth consecutive month of contraction and an 11-month low.
Consumer confidence has been slipping as exports struggle and retail oil prices increase. It’s also worth noting that Thai consumer confidence hasn’t been able to reside above the 100.0 benchmark which separates optimism from pessimism since 2004.
Industry expert Thanavath Phonvichai commented: ‘Although many believe things will be better in the second half of this year… people do not feel that the economy will be on an uptrend over the next 3-6 months, so they are still cautious about spending.’
The Thai Baht to Pound Sterling (THB/GBP) exchange rate is trending in the region of 0.0192.
US Dollar (USD) Exchange Rate Forecast for Change in Non-Farm Payrolls Fluctuations and Fed Rate Hike Speculation
Meanwhile, the US Dollar (USD) is forecast for significant movement on Friday with the release of the US Change in Non-Farm Payrolls and Unemployment Rate stats. Any improvement in US payrolls or unemployment could see the US Dollar (USD) experience a significant rally as investors’ price in the possibility of a Federal Reserve rate hike.
Thursday could see some moderate US Dollar (USD) exchange rate movement with the release of US Initial Jobless Claims and Continuing Claims ecostats.
The US Dollar to Pound Sterling (USD/GBP) exchange rate is trending in the region of 0.6487.
Euro (EUR) Exchange Rate Forecast for Greek Situation Movement as IMF Deadline Looms
Meanwhile, the Euro (EUR) is also expected to end the week with a bang with the situation in Greece unfolding rapidly. Thursday saw the Greek government reject its creditors reform proposals, leaving great uncertainty on whether a Grexit would occur in the near future. With a looming International Monetary Fund (IMF) repayment due on Friday and Greece reported to not have the funds available to pay it, tomorrow could be a massive day for EUR movement.
Currency analyst Connor Campbell commented: ‘The Greek PM, for now, is holding firm to the idea that any deal must be based on a proposal coming from, not going to, Greece, with a counter offer from the country expected to land at creditors’ feet at some point before the end of the week.’
The Euro to Pound Sterling (EUR/GBP) exchange rate is trending in the region of 0.7364.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is trending in the region of 1.5427. The Pound Sterling to Thai Baht (GBP/THB) exchange rate is trending at 52.1140. The Pound Sterling to Euro (GBP/EUR) exchange rate is trending in the region of 1.3596 and is forecast to experience major fluctuations on Friday.