The Pound Sterling to Euro (GBP/EUR) exchange rate firmed against the Euro as Thursday’s session progressed as concerns grew that Greece will run out of money by April 8. A deal must be reached between Athens and its creditors before then or else Greece will default and possibly be forced to leave the Eurozone. Such an event was highlighted as a threat to the improving Eurozone economy.
The Pound Sterling to US Dollar (GBP/USD) exchange rate weakened following the release of stronger than forecast PMI and jobless claims data.
According to the Washington based U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending March 21 declined by 9,000 to 282,000 from the previous week’s total of 291,000. Analysts had expected initial jobless claims to fall by 1,000 to 290,000 last week.
Earlier…
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in a tight range on Thursday, as better-than-forecast UK retail sales data failed to dent the Euro, which was strongly supported by more positive data out of Germany.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the range of 1.3587
Another positive report out of the Eurozone’s largest economy buoyed the single currency and allowed it to shrug off soft Gross Domestic Product (GDP) data out of France. According to market research group, GfK, its consumer sentiment indicator showed that confidence amongst German consumers surged to the highest level in 13-1/2 years. The indicator rose from the previous figure of 9.7 to 10.0.
Sentiment was boosted by expectations that wages will rise over the coming months and that the wider Eurozone economy will strengthen thanks to low interest rates and the introduction of the European Central Bank’s €1.1 trillion quantitative easing programme.
‘German consumers are becoming ever more optimistic. Rising employment and income prospects coupled with low energy prices are giving consumers planning security and the financial means for making major purchases with renewed vigour,’ said GfK analyst Rolf Buerkl.
Following the release of the German data, the Euro made further gains before better than forecast UK retail sales data offered support to the Pound Sterling.
According to the London based Office for National Statistics (ONS), British retail sales increased more than expected in February. The rise in sales was supported by a recovery in the nation’s housing market and a rise in furniture purchases. Sales were also shown to have grown in all other sectors too.
Compared with the previous year, retail sales increased by 5.7%, a figure that smashed the 4.7% figure economists had expected.
Sales on a monthly basis also improved more than forecast by rising by 0.7%, beating expectations for a 0.4% rise.
Sales excluding fuel increased by 0.7% an improvement on the preceding month’s revised figure of -0.3%.
The Pound Sterling to US Dollar (GBP/USD) exchange rate reached a session high of 1.4994
Following the release of the data, the Pound settled into a narrow range against the Euro. Against the US Dollar however, Sterling strengthened to a new 1-week high.
The ‘Greenback’ remained under pressure after the Washington based Commerce Department reported on Wednesday that total durable goods orders fell by -1.4% last month.
The figure was just the latest in a string of disappointing data releases out of the world’s largest economy.
