UPDATE
The Pound Sterling to Euro (GBP/EUR) exchange rate edged higher by around 0.2% on Friday morning, whilst the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate was trending within a limited range.
After declining significantly in response to lower-than-expected retail sales, the Pound recovered some of its losses early during Friday’s European session. The appreciation can be attributed to speculation that the Bank of England (BoE) will still look to hike the cash rate within 2015 despite soft retail sales.
The Euro, meanwhile, softened versus the majority of its most traded currency peers after economic data from France, Germany and the Eurozone as a whole provided disappointing results. The manufacturing, services and composite PMIs from the aforementioned regions all failed to meet with respective median market forecasts.
Although gold prices continue to drop, the Swiss Franc is holding steady versus most of its currency competitors. The ‘Swissie’ (CHF) avoided continued depreciation thanks to safe-haven demand amid disappointing factory output from China and tumbling commodity prices.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4157.
The Pound Sterling to Swiss Franc (BP/CHF) exchange rate is currently trending in the region of 1.4904.
Yesterday…
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Soften on Easing Greek Tensions
The Pound Sterling to Euro (GBP/EUR) exchange rate declined by around -1.0% on Thursday afternoon.
In response to less-than-ideal domestic data results, the Pound softened versus nearly all of its major currency peers. The poor retail sales results were of particular disappointment given that many analysts had forecast a significant uptick due to the combination of wage growth, ultra-low interest rates and flat line consumer prices. One positive aspect of the retail sales was the yearly figure, which showed the 27th consecutive month of growth in the sector.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4253.
The single currency, meanwhile, advanced versus many of its most traded currency rivals. The appreciation is the result of easing tensions regarding Greece after MPs voted to accept a second package of reforms in order to receive financial aid. However, most agree that the deal is poor and will not be beneficial for Greece. Prime Minister Alexis Tsipras already stipulated that he intends to do everything in his power to improve the deal during the final stages of negotiations.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within the range of 1.4133 to 1.4304.
Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Forecast to Dive despite Damp Safe-Haven Demand
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate softened by around -0.7% on Thursday afternoon.
‘The June retail sales data are a little disappointing (particularly given the strong BRC survey) but the underlying trend is still decent and the data are not a body blow to improved second quarter growth hopes,’ Howard Archer, chief economist at IHS, said. ‘The prospects for retail sales and consumer spending look bright for the rest of 2015 and beyond: Consumer confidence was at a 15-year high in June, inflation is negligible, earnings growth is improving and employment has risen appreciably overall (despite a relapse in the latest data).’
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is currently trending in the region of 1.4879.
Despite the fact that easing Greece concerns have dampened demand for safe-haven assets, the Swiss Franc advanced versus many of its currency rivals. This can be attributed to rising gold prices as a comparatively weak US Dollar stokes demand for bullion. The ‘Swissie’ (CHF) strength will be frustrating for Swiss National Bank (SNB) officials who have been desperately trying to devalue the Franc after the SNB removed the Euro cap back in January.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate was trending within the range of 1.4862 to 1.4995 during Thursday’s European session.
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