Pound Sterling to Euro (GBP/EUR) Exchange Rate Dives as Greece Secures Bailout Funds
The Pound Sterling to Euro (GBP/EUR) exchange rate dived by around -0.7% on Thursday morning.
Although British Retail Sales met with median market projections, the Pound softened because the previous figures were negatively revised. July’s Retail Sales came in at 0.4% on the month, with the previous figure revised down to -0.3%. On the year, July’s Retail Sales equalled the median market forecast 4.3% growth. Retail Sales including Auto Fuel came in at 0.1% on the month; failing to meet with the market consensus of 0.4%. On the year, July’s Retail Sales including Auto Fuel hit 4.2%; below the median market projection of 4.4%.
‘Low inflation and faster wage growth, along with a booming housing market, are helping to support consumer spending. Bank of England policy makers see price gains picking up at the end of the year after they crept back above zero in July, and Governor Mark Carney said last month that the time for tighter policy is nearing,’ stated Scott Hamilton writing for Bloomberg.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4003.
The Euro, meanwhile, edged higher versus its major peers after Greece finally secured bailout funds. Month of uncertainty and negotiations have led to the Hellenic nation receiving financial aid, but at a cost. Greek Prime Minister Alexis Tsipras has lost the confidence of his own political party and many analysts predict that he will call a snap election. The shared currency saw little by way of appreciation at the news, however, with trader focus dominated by proceedings in China after the Shanghai Composite tumbled once again.
‘For such a long time Greece was the market moving force, be that positive or negative; now, despite a deal being signed, sealed and delivered, something that has happened against pretty formidable odds, investors have been infected with a fear over China that is outweighing any other (non-interest rate related) news. Another tumble by the Shanghai Composite merely reinforced the idea that the Chinese government is struggling to provide a tourniquet for its headline index, and caused the markets to open to more widespread losses after the bell,’ said Conner Campbell of SpreadEX.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending within the range of 1.3989 to 1.4105 during Thursday’s European session.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Soften ahead of US labour Data
The Pound Sterling to US Dollar (GBP/USD) exchange rate declined by around -0.4% on Thursday morning.
Looking ahead, there will be several British data publications on Friday with the potential to provoke changes for the British asset. Central Government NCR, Public Sector Net Borrowing, Pubic Finances and PSNB ex Banking Groups will all be of interest to those invested in the British asset.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5625.
After the Federal Open Market Committee (FOMC) minutes showed that policymakers wanted to see improvement in the labour market and inflationary pressures before considering a benchmark rate hike, the US asset softened versus many of its major peers. Hopes for a September rate hike are now considered pipe dreams by many market analysts.
US data, due for publication later on Thursday afternoon, has the potential to stimulate changes for the ‘Greenback’ (USD). Continuing Claims, Initial Jobless Claims, Existing Home Sales, Leading Indicators and the Philadelphia Fed Report will all be of interest to those trading with the US asset.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within the range of 1.5603 to 1.5702 during Thursday’s European session.
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