Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast – German Confidence Improves, Euro Holds losses
During the European session the Pound Sterling to Euro (GBP/EUR) exchange rate remained trading close to a seven-year high.
Ongoing concerns regarding the extension to Greece’s aid programme kept the common currency under pressure and limited the impact of a mixed bag of economic reports for the Eurozone.
While Germany’s GfK Consumer Confidence index improved and the level of joblessness in the Eurozone’s largest economy fell by considerably more than expected, measures of industrial/services confidence for the currency bloc as a whole declined unexpectedly in February.
Meanwhile, the UK’s fourth quarter growth data confirmed expansion of 0.5% at the end of 2014, in-line with previous estimates. The level of UK exports was also shown to be considerably stronger-than-anticipated in the fourth quarter, rising by 3.5% on the quarter instead of the 1.1% forecast.
UK Business Investment did decline however, prompting the Office for National Statistics to comment; ‘Given the recent steep fall in oil prices, it might be expected that investment by the oil extraction industry might also fall, as oil production becomes less profitable.’
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3669
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast – Pound Looses 0.7% after US Data
The Pound Sterling to US Dollar (GBP/USD) exchange rate fell back below 1.55 during the North American session as US Durable Goods Orders impressed and a prominent Federal Reserve official called for higher interest rates.
The Fed’s James Bullard is known for his rather hawkish stance on interest rates, but his calls for a change of rhetoric from the Federal Reserve still gave the ‘Greenback’ a boost.
Meanwhile, the US CPI figures printed mostly as forecast and Durable Goods Orders were shown to have risen by almost twice the amount expected in January.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5406
Earlier…
The Pound Sterling to US Dollar (GBP/USD) exchange rate achieved an eight-week high on Wednesday as demand for the British currency remained supported thanks to improved Bank of England interest rate hike expectations.
The belief that today’s US Consumer Price Index will show a steep drop off in consumer prices also contributed to the GBP/USD pairing’s uptrend.
Annual, non-core inflation is projected to print at -0.1%. If the result meets, or comes in lower than that estimate, the timeline for the Federal Reserve increasing borrowing costs could be pushed back and the US Dollar could touch a fresh multi-week low against its UK peer.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trading in the region of 1.5529
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast – Pound Trends in Narrow Range Ahead of UK Growth Data
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate was little changed following the publication of the UK’s fourth quarter growth data.
As the report confirmed previous estimates it had little impact on Sterling.
However, the set of figures did reveal stronger export growth and weaker imports than economists had projected.
The Rupee, meanwhile, continued to derive support from the week’s slightly dovish comments from Federal Reserve Chairwoman Janet Yellen.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate was trading in the region of 95.9400
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast – ‘Kiwi’ Extends Gains as New Zealand Posts Trade Surplus
Earlier in the week the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate declined as higher-risk currencies like the ‘Kiwi’ were bolstered by reduced US interest rate hike expectations.
A stronger-than-anticipated manufacturing report for China (one of New Zealand’s main trading partners) also lent the New Zealand Dollar support and the commodity-driven currency was able to consolidate and extend gains on Thursday as a result of better-than-forecast domestic data.
New Zealand was shown to have posted a 56 million New Zealand Dollar trade surplus in January, up from a deficit of 195 million New Zealand Dollars in December.
The data saw the New Zealand Dollar strengthen against several of its peers.
According to Statistics New Zealand; ‘Total goods exports were down NZ$371 million to NZ$3.7 billion January 2015 compared with January 2014. Milk powder butter and cheese exports drove the fall, down 30%, led by lower prices. The quantity of dairy-products exports rose 2.9%, led by cheese and butter, however the quantity of milk powder exported fell 3.1%’
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trading in the region of 2.0455
