The Pound to Euro (GBP/EUR) exchange rate was trending over 0.3% stronger on Monday as investors interest in the British asset was renewed by recent comments from Bank of England Governor Mark Carney.
Carney was his usual inconsistent self on Sunday, reigniting speculation regarding the timeline for raising interest rates with a couple of provocative remarks during an interview with The Sunday Times.
Last week the Pound plummeted as the BoE quarterly inflation report slashed wage growth forecasts and expectations for the first hike in borrowing costs were put back to next May.
However, Carney has now stated that wage growth doesn’t necessarily have to reach the pace of inflation before borrowing costs are increased from record lows.
He stated that before interest rates rise ‘We have to have the confidence that real wages are going to be growing sustainably. We don’t have to wait for the fact of that turn to do so. […] In terms of our broader message, and where the committee is united and has the same view, is that as the expansion continues, rates are going to go up. People might have different views on the exact timing, but it will happen and people should plan accordingly. Second, our best judgement of the path is that it will be limited and gradual, a new normal if you will.’
The Pound broadly strengthened in response to the interview, recouping much of the ground lost last week and jumping against peers like the Euro and US Dollar.
Sterling continued to trend in a stronger position in spite of a less-than-spectacular Rightmove House Price report.
The house price data showed a -2.9% month-on-month decline in property values in August. This followed a 0.8% decline in July and is further evidence that the UK’s housing market may be cooling.
Pound Sterling to Indian Rupee Exchange Rate Today…
Carney’s commentary also left the Pound Sterling to Indian Rupee (GBP/INR) exchange rate trending in a stronger position.
The GBP/INR pairing was up 0.4% on the day’s opening levels as the European session continued.
With economic reports for India severely lacking this week, volatility in the Pound to Rupee exchange rate is most likely to be caused by UK news, including tomorrow’s UK Consumer Price Index for July.
The Rupee was slightly stronger against the US Dollar on Monday and some industry experts believe that that pairing may continue to exhibit strength.
Pound Sterling to Euro (EUR/GBP) Exchange Rate Forecast
The Pound to Euro exchange rate was little-changed following the release of trade balance data for the Eurozone.
As the week progresses, movement in the pairing could be caused by the Eurozone’s Construction Output figures and Services, Manufacturing and Composite PMI for Germany, France and the Eurozone as a whole.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trending in the region of 0.8001.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.2495.
Euro Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,
,Pound Sterling,0.8000,
Euro,,US Dollar,1.3389,
Euro,,Canadian Dollar,1.4571,
Euro,,Australian Dollar,1.4369,
Euro,,New Zealand Dollar,1.5784,
US Dollar,,Euro ,0.7470,
Pound Sterling,,Euro,1.2496,
Canadian Dollar,,Euro,0.6862,
Australian Dollar,,Euro,0.6959,
New Zealand Dollar,,Euro,0.6335,
[/table]
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