Pound Sterling to Euro (GBP/EUR) Exchange Rate Static after GDP Report
On Friday the GBP/EUR exchange rate moved between highs of 1.2698 and lows of 1.2656. The Pound just about managed to trend higher against the Euro in spite of Germany’s GfK Consumer Confidence report unexpectedly showing an improvement in sentiment.
Economists had forecast that the gauge would slip from 8.4 to 8.0 in October but it actually edged up to 8.5.
According to GfK; ‘German consumers were evidently less affected by the continued problematic geopolitical situation and the resultant economic slowdown than they had been in the previous month. Following moderate declines in the previous month, both income expectations and the willingness-to-buy improved again, thereby confirming their already high level. The slump in economic expectations has ended and virtually no change was recorded in comparison with September.’
While this report was fairly positive, particularly given the run of concerning economic reports to emerge from the Eurozone’s largest economy in recent months, Euro gains were limited as investors looked ahead to Sunday and the announcement of the European Central Bank’s banking stress test results.
The news that the pace of UK growth slowed from 0.9% in the second quarter to 0.7% in the third had little impact on Pound to Euro trading.
The GBP/EUR exchange rate is currently trending in the region of 1.2690.
Pound Sterling to US Dollar (GBP/USD) Advances on Ebola Scare
The US Dollar softened across the board after it emerged that a man in New York had been diagnosed with Ebola. The first case of the illness in the iconic US city sparked fear among investors and triggered a risk-off environment.
The GBP/USD exchange rate gained over 0.2% to achieve a high of 1.6072.
As the UK’s third quarter growth report met with forecasts it had little impact on GBP/USD trading.
That being said, the appeal of the Pound was slightly undermined by the fact that the UK Index of Services stagnated on the month in August instead of increasing 0.3% as forecast.
The Pound to US Dollar exchange rate could fluctuate following the release of the US New Home Sales figures. If sales decline as expected it could push the GBP/USD pairing higher.
The Pound to US Dollar exchange rate is currently trading in the region of 1.6038
Pound Sterling to Indian Rupee (GBP/INR) Trends in Narrow Range
This week has been very light in terms of Indian economic data. Consequently, the direction taken by the emerging market asset has been dictated by global economic developments.
At the close of the week a risk-off environment, coupled with on-target UK growth data, saw the GBP/INR exchange rate gain by 0.2% during the European session.
Although the pace of UK expansion was shown to have slowed in the third quarter, the data was in line with expectations and so failed to have a negative impact on the Pound.
That being said, in the opinion of economist Jeremy Cook; ‘Headwinds from the current slowing of output in Europe and China are obvious dangers to the UK’s growth picture. With real wages staying determinedly negative at the moment there are concerns about how much farther domestic demand levels can be pushed.’
Next week Indian data is lacking again but UK reports, including the nation’s consumer confidence gauge, could impact the GBP/INR exchange rate.
The Pound to Indian Rupee exchange rate is currently trading in the region of 98.0690
Pound (GBP) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,US Dollar,1.6025,
Pound Sterling,,Euro,1.2631,
Pound Sterling,,Australian Dollar,1.8392,
Pound Sterling,,New Zealand Dollar,2.0289,
US Dollar,,Pound Sterling,0.6240,
Euro,,Pound Sterling,0.7914,
Australian Dollar,,Pound Sterling,0.5435,
New Zealand Dollar,,Pound Sterling,0.4925,
[/table]
