British Pound (GBP) Ekes out Modest Gain as Construction Activity Expands
The Pound Sterling to Euro (GBP/EUR) currency pair registered a slight gain after the UK’s Construction PMI registered unexpected improvement. The GBP/AUD and GBP/INR exchange rates were little changed after the data.
The nation’s construction index moved from 59.1 in January to 60.1 in February.
However, as the UK’s Construction Sector accounts for such a small percentage of total economic growth, the result failed to give Sterling much of a boost.
UK construction PMI rises to 60.1 in February, according to Markit, defying expectations of a fall pic.twitter.com/BddalTtXPy
— TimesBusiness (@TimesBusiness) March 3, 2015
However, as the Eurozone’s Producer Price Index registered steeper-than-anticipated monthly and annual declines, the GBP/EUR exchange rate could edge higher as trading continues.
Earlier…
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast – RBA Leave Interest Rates on Hold, ‘Aussie’ Climbs
During the Australasian session the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate fell by over -0.7% in response to the Reserve Bank of Australia’s (RBA) interest rate decision.
At its last gathering the RBA surprised investors by issuing a 0.25 basis point interest rate cut. As the RBA habitually acts twice in quick succession at the beginning of a new fiscal cycle, some industry experts had expected the central bank to slash rates again at its March meeting, and in the run up to the event the ‘Aussie’ declined accordingly.
However, the central bank opted to leave policy on hold and the Australian Dollar strengthened across the board despite RBA Governor Glenn Stevens asserting that ‘a lower exchange rate is likely to be needed to achieve balanced growth in the economy.’
Industry expert Sean Callow said of the Australian Dollar’s movement; ‘It’s a positive for the Aussie short term because it does mean that yields are somewhat higher than it could’ve been. But the central bank has kept an easing bias which means the market will continue to regard another rate cut as merely a matter of time.’
The Pound could pare losses against the Australian Dollar in the hours ahead if the UK’s Construction PMI comes in higher than expected.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast – Euro Supported by German Retail Sales
The Pound Sterling to Euro (GBP/EUR) exchange rate softened on Monday following the publication of better-than-forecast inflation and unemployment reports for the Eurozone.
UK general election concerns also weighed on the Pound and the GBP/EUR pairing moved back towards the 1.37 level.
This morning Sterling continued trading in a softer position against the Euro as Germany’s retail sales report showed far stronger than anticipated sales growth.
Retail sales were expected to have increased by 0.4% on the month in January, but they actually jumped by 2.9%. December’s figure was also positively revised.
While this morning’s UK Construction PMI is likely to have an impact on Pound to Euro trading, the Eurozone’s Producer Price Index for January will be another cause of movement.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast – Rupee Steady before Current Account Data
With the publication of India’s current account data delayed until tomorrow, the GBP/INR exchange rate was left trending in a narrow range.
Earlier…
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate was trending in a narrow range ahead of the release of India’s current account figures.
Economists have forecast that India’s current account deficit narrowed from -10.1 billion Dollars in the third quarter to -8.8 billion Dollars in the fourth quarter.
If that proves to be the case, the Rupee could strengthen against the Pound in the hours ahead.
Tomorrow’s Indian Services PMI is also likely to be responsible for GBP/INR movement as the week continues.
The measure of India’s services sector is believed to have softened from 52.4 in January to 52.07 in February.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trading in the region of 1.9629, The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3732, The Pound Sterling to Indian Rupee exchange rate is currently trading in the region of 95.0020
