The Pound Sterling to Hong Kong Dollar (GBP/HKD) exchange rate strengthened by around 0.30% on Wednesday morning.
After a conference speech on Wednesday given by Bank of England (BoE) Governor Mark Carney, the Pound strengthened versus many of its major peers. The speech highlighted the BoE’s willingness to overhaul policy in order to guarantee a prosperous future. Positive UK data also aided the Sterling uptrend.
The Hong Kong Dollar, conversely, softened versus many of its most traded currency rivals as a result of cooling economic growth. Hong Kong’s government has blamed the lack of growth on last year’s protests, and pledges a large sum of money to cover the losses to local business.
The Pound Sterling to Hong Kong Dollar (GBP/HKD) exchange rate is currently trending in the region of 12.0240.
Pound Sterling (GBP) Exchange Rate Strengthens on Carney Comments
After strengthening following a speech given by Mark Carney on Tuesday, Wednesday’s speech has also been received positively. Carney showed that interest rates were not the only thing on his mind, with research being prepared to tackle other issues.
‘There are a number of fundamental technological and structural global trends which have a potentially significant bearing on central banking,’ the BOE said in a summary document for the conference, citing increasing longevity, inequality and the increasing importance of emerging economies. ‘The potential policy implications of these developments range from the evolution of real interest rates to risks to the financial sector to the future of money and banking itself.’
British economic data also printed positively on Wednesday, which bolstered the Pound’s gains. Loans for House Purchase came in at 36394 in January, eclipsing the median market forecast of 36000 and the previous figure of 35816.
The Pound Sterling to Hong Kong Dollar (GBP/HKD) exchange rate has fallen to a low of 11.9840.
Hong Kong Dollar (HKD) Exchange Rate Softens on Disappointing Growth
Hong Kong’s fourth-quarter year-on-year Gross Domestic Product showed growth of 2.2%, dropping from the previous growth of 2.7%. On a quarterly basis, GDP rose by 0.4%; well below the previous figure of 1.4%.
‘The occupy movement affected tourism, hotel, catering, retail and transport industries,’ the government said Wednesday. ‘Prolonged political bickering is detrimental to public administration and the international image of Hong Kong as a stable, law-abiding and efficient city.’
‘We need to rebuild international investors’ and tourists’ confidence in Hong Kong and uplift our international image,’ the government said.
Pound Sterling to Hong Kong Dollar (GBP/HKD) Exchange Rate Forecast to Hold Gains
With a lack of data to curb the trend, and with mounting positive sentiment towards the British central bank, the Pound Sterling to Hong Kong Dollar (GBP/HKD) exchange rate is likely to hold gains for the remainder of Wednesday.
There is the potential for GBP/HKD volatility on Thursday, with British growth data and Hong Kong trade balance data due for publication.
The Pound Sterling to Hong Kong Dollar (GBP/HKD) exchange rate climbed to a high of 12.0500 today.
