On Wednesday the Pound was trading in a stronger position against the Indian Rupee and Euro, but drifted lower against the New Zealand Dollar.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast – Sterling Higher after UK Mortgage Approvals Data
The GBP/EUR pairing prepared to close out the European session trading around the day’s opening levels in spite of a report indicating that the European Central Bank (ECB) may have miscalculated the availability of the bonds needed to back its extensive quantitative easing measures – due to be rolled out in March.
As Germany is set to publish employment data tomorrow and the UK is due to release fourth quarter growth data, there could be a greater degree of Pound Sterling to Euro (GBP/EUR) exchange rate movement tomorrow.
Earlier…
The Pound’s recent run of gains against the Euro continued on Tuesday and the GBP/EUR currency pair was able to strike a new 7-year high after the Eurozone’s annual inflation figure for January came in at -0.6%.
Concerns that the reform package approved by Greece’s creditors may not be enough to keep the nation in the Eurozone long-term also wore on the Euro, while rising hopes that the BoE intends to raise interest rates next year kept Sterling supported.
On Wednesday a better-than-expected UK BBA Loans for House Purchase figure kept the Pound trading in a slightly stronger position.
In the hours ahead, speeches to be given by prominent officials from both the Bank of England and European Central Bank could have an impact on the direction taken by the Pound Sterling to Euro (GBP/EUR) currency pair.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3649
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast – ‘Kiwi’ Bolstered by Chinese Data
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate fell by over 0.6% on Wednesday as higher-risk currencies were bolstered in the wake of Federal Reserve Chairwoman Janet Yellen’s testimony to Congress.
As the Fed official appeared to be attempting to temper FOMC interest rate hike expectations, the prospect of borrowing costs remaining lower for longer supported currencies like the Australian and New Zealand Dollars.
The commodity-driven New Zealand Dollar also gained as China’s HSBC Manufacturing PMI unexpectedly climbed back into expansion territory in February.
The index increased from 49.7 to 50.1 instead of sliding to 49.5 as anticipated.
Australian Dollar gains were also recorded in the wake of the Chinese data.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is trading in the region of 2.0528
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast – Pound Broadly Stronger after Carney Comments, but Rupee Supported by Fed
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate was trading around the day’s opening levels on Wednesday.
After Bank of England (BoE) Governor Mark Carney reasserted that the central bank expects inflation to return to target in 2016 and that the central bank is more inclined towards a tightening than easing bias, the Pound continued trading bullishly against several of its biggest rivals.
However, emerging-market assets like the Indian Rupee were also boosted after Federal Reserve Chairwoman Janet Yellen issued a rather neutral testimony to Congress and inferred that investors shouldn’t expect an interest rate hike to occur immediately following a change of rhetoric.
In the hours ahead, further comments from Mark Carney could cause GBP/INR exchange rate movement.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate was trading in the region of 96.2340
