The Hong Kong Dollar (HKD) made gains against the British Pound (GBP) on Thursday after the UK currency was weakened by disappointing Retail Sales data and the Hong Kong currency was buoyed by positive Consumer Price Inflation data.
According to Hong Kong’s Census and Statistics Office, consumer prices in the special administrative region of the People’s Republic of China increased at a faster pace than forecast in July and defied expectations of a slowdown.
The Consumer Price Index increased by 4% on a year on year basis in July adding to the previous month’s increase of 3.6% growth in June.
The figure beat economist expectations for a slowdown of 3.5%.
The data showed that consumer prices all the major sub-categories rose in July. The prices of water, gas and electricity all increased by around 24.8%.
Prices of alcohol and tobacco products increased by 7% in July. House prices rose by 4.6% and general food prices increased by 4.1%.
Underlying inflation was up 3.3% year on year, marginally slower than the 3.4% expansion in June, mainly due to smaller increases in private housing rentals and the charges for package tours.
‘Looking ahead, the underlying inflation should remain contained for the rest of the year, given the generally modest price pressures both locally and externally. The government will continue to monitor the inflation developments closely and stay vigilant to their impact on the lower income people,’ said a representative from the Hong Kong Government.
Hong Kong Dollar to Pound Sterling (HKD/GBP) Exchange Rate
The Hong Kong Dollar was able to make gains against the Pound after the UK currency was weakened by disappointing retail sales data.
According to the London, based Office for National Statistics (ONS) retail sales increased just 0.1% in July compared to the previous months figure.
Economists had been forecasting a rise of 0.4%.
The weak figure was blamed on price wars being waged by the nation’s major retailers and caused traders to pare back their bets for an interest rate rise before the end of the year.
‘Although consumers have benefitted from the supermarket discounting, it will continue to have a detrimental effect on total retail sales this year. England’s early exit from the World Cup also deprived the grocery sector of a much needed fillip,’ said Keith Richardson, managing director of the retail sector from Lloyds Bank.
The HKD/GBP exchange is forecast to remain supported going into the weekend due to a dearth of UK economic data releases on Friday and the closure of UK markets next Monday for the Summer Bank Holiday.
Hong Kong Dollar (HKD) to British Pound (GBP) Exchange Rate Holds Steady
Yesterday the Hong Kong Dollar to Pound Sterling exchange rate trended higher on the back of impressive Hong Kong consumer prices data, and unimpressive UK retail sales growth.
Today the exchange rate has been reasonably static. This is because there aren’t any domestic data releases pertaining to either the UK or Hong Kong.
Expect the Hong Kong Dollar to Pound Sterling exchange rate to be dictated by foreign currencies, namely the US Dollar ahead of tonight’s Jackson Hole symposium.
Hong Kong Dollar (HKD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,Hong Kong Dollar,12.8549 ,
Euro,, Hong Kong Dollar,10.2798 ,
US Dollar,, Hong Kong Dollar,7.7500 ,
[/table]
Comments are closed.