The Pound Sterling (GBP) has risen by 0.7% against the US Dollar (GBP/USD) today and by 0.2% against the Euro (GBP/EUR) following a failure for the US Claims Data to provide ‘Buck’ (USD) optimism.
BoE Back in the Headlines Tomorrow after with Inflation Estimate
The Pound Sterling (GBP) has the potential to extend the gains acquired today by having a highly optimistic expectation from the Bank of England (BoE) regarding its inflation estimate for the next 12 months, although given the ‘business as usual’ tone of today’s minutes, it remains a possibility that no dramatic predictions will be made.
Earlier…
The Pound Sterling to US Dollar (GBP/USD) and Euro (GBP/EUR) exchange rates have risen today on account of the Bank of England (BoE) minutes showing that a steady recovery is in sight for the UK economy.
US Claims and Inventories Data may Upset Current Strong Showing for Sterling
A 0.3% rise against the US Dollar (GBP/USD) and a 0.6% gain against the Euro (GBP/EUR) have been printed today by the Pound Sterling (GBP). This follows overly positive words from the BoE regarding the future of the UK economy. Although Ian McCafferty once again remained alone as the sole voice in favour of an interest rate hike, elsewhere the BoE’s minutes caused a mass Sterling uptrend.
Later on today, however, the US Initial Jobless and Continuing Claims figures are out, as are the Wholesale Inventories numbers. Any signs of a large reduction in the numbers of claims (against predictions) will boost the US Dollar’s (USD) performance, as will the forecast reduction in inventory sizes if it proves accurate.
Earlier…
A minor gain in the Pound Sterling to Euro (GBP/EUR) exchange rate today has been offset by a similarly sized loss against the US Dollar (GBP/USD); this has been caused by a mass of negative UK data this morning.
GBP/USD, GBP/EUR Exchange Rate News: Nothing Positive as UK Data Clump Drags GBP Exchange Rates Down
The Pound Sterling (GBP) has risen by 0.2% against the Euro (GBP/EUR) today, but has seen a similar loss of -0.3% against the US Dollar (GBP/USD). The Pound has also fared exceedingly poorly elsewhere, either falling or trending narrowly against all other rivals. The only thing that can be considered a gain for Sterling today has been a 0.2% rise against the Japanese Yen (GBP/JPY).
This obvious declination of the Pound has been triggered by every piece of UK data this morning failing to meet with forecasts. The largest of these shortfalls were the annual Industrial and Manufacturing results for July, along with the July Trade Balances. Chief European and UK Economist at IHS Economics Howard Archer remarked that ‘Muted manufacturing activity and weakened exports is worrying for hopes that UK growth can become balanced and less dependent on the services sector and consumer spending’. For context, the UK Services PMI dropped from 57.4 points to 55.6 last week, damaging the Pound in the process.
US Dollar (USD) Exchange Rate Gathers Momentum in the Wake of Positive US Results Yesterday
The US Dollar to Pound Sterling (USD/GBP) exchange rate has risen by 0.3% today, while the ‘Greenback’ (USD) has risen healthily elsewhere. Advances of over 0.2% have been seen against the Canadian Dollar (USD/CAD), the Japanese Yen (USD/JPY), the Norwegian Krone (USD/NOK) and the Euro (USD/EUR), although the ‘Buck’ has dropped by -0.3% against the South African Rand (USD/ZAR).
This acceptable performance has been caused by the August US Labour Market Conditions Index Change rising from 1.8 to 2.1 yesterday, along with the Consumer Credit figure for July not falling by as great an amount as had been expected.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Rises on 2015 Greek Election Concerns
The Euro (EUR) has waned in appeal today due to a lack of Eurozone news bringing the second 2015 Greek election uncertainty to the fore. Polls show a level pegging for Former Prime Minister Alexis Tsipras’ party and rivals New Democracy, although thankfully both major contenders have expressed their acceptance of the hard-won third Greek bailout.
The Euro has dropped by over -0.5% against the Australian Dollar (EUR/AUD), the Swiss Franc (EUR/CHF, the Indian Rupee (EUR/INR) and the South African Rand (EUR/ZAR) and has elsewhere depreciated by more than -0.2% against the Pound Sterling (EUR/GBP) and the US Dollar (EUR/USD).
GBP to USD, EUR Exchange Rate Forecast: BoE Decision Looms Tomorrow although no Change is Predicted
The most immediate influence on the Pound’s (GBP) relationship with the Euro (GBP/EUR) and the US Dollar (GBP/USD) will be the Bank of England (BoE) interest rate decision tomorrow. No predictions have been made for a change from 0.50%, but the remarks of BoE policymakers will be scrutinised with heightened interest for any hawkish tones that could imply a rate rise in the coming months.
Current GBP, USD, EUR Exchange Rates
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5358, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6511, the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3770, the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7263, the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.6512 and the Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1155 today.
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