The Pound Sterling to Turkish Lira (GBP/TRY), Malaysian Ringgit (GBP/MYR) and Pound Sterling to Swiss Franc (GBP/CHF) exchange rates all climbed in Wednesday’s European session after the Bank of England’s (BoE) meeting minutes boosted the British currency significantly higher.
Malaysian Inflation Rate Increase Fails to Battle Pound Sterling Strength (MYR/GBP)
Wednesday morning saw Malaysia’s Inflation Rate increase to 0.9% on the year in March, following February’s 0.1% figure, in a rise accredited to higher transportation costs.
The Department of Statistics Malaysia stated: ‘When compared with the previous month, the CPI [Consumer Price Index] for March 2015 increased by 0.9%. Increases were for main groups, namely Transport (+0.8%), Clothing and Footwear and Health by 0.4% respectively; Restaurant & Hotel and Miscellaneous Goods and Services by 0.3% respectively; Furnishings, Household Equipment & Routine Household Maintenance and Education by 0.1% respectively.’
Turkish Consumer Confidence Rises, Central Bank of the Republic of Turkey Interest Rate Decision Ahead
Meanwhile, the Turkish Lira could be in for an interesting day of trading on Wednesday after Turkey’s Consumer Confidence level rose from 64.40 in March to 65.35 in April. Economists had forecast a decline to 63.29.
Economist Banu Kivci Tokali commented: ‘Households feel more confident about their financial situation. Some stabilisation in financial volatility may be deemed as supportive for the recent recovery in consumer confidence.’
However, there’s likely to be more movement ahead for the Turkish Lira with the Central Bank of the Republic of Turkey (CBRT) due to announce its latest interest rate decision. Economists forecast the bank rate will remain at 7.5%.
Friday could be another influential day for the Lira exchange rate when the Turkish Business Confidence and Capacity Utilisation figures emerge.
Swiss ZEW Expectations Rise as Swiss National Bank (SNB) Fallout Fades
The Swiss Franc also has an interesting day on Wednesday with the release of the April ZEW Swiss Expectations Survey. The ecostat rose from the depths of contraction at -37.9 in March, to a much more favourable -23.2 this month.
ZEW commented: ‘In April 2015 expectations for Switzerland’s economy brighten further, marking a continuation of the recovery of the economic outlook after the CHF shock at the start of 2015.’
‘The ZEW CS indicator rises by 14.7 points to a reading of minus 23.2 points. The ZEW CS Indicator reflects the expectations of the surveyed financial marker experts regarding the economic development in Switzerland on a six-month time horizon.’
Pound Sterling to Swiss Franc (GBP/CHF), Malaysian Ringgit (GBP/MYR) and Turkish Lira (GBP/TRY) Exchange Rate Forecast
The Pound Sterling exchange rate is likely to continue fluctuating on the Bank of England’s meeting minutes as investors digest the report. The hawkish tones in the minutes suggest that a policymaker divergence is likely to occur in the near future and that interest rates may begin to rise.
Industry expert Enrique Diaz-Alvarez commented: ‘The BoE slipped in a comment that seems to indicate markets are being too relaxed about the timing of upcoming rate hikes.’
Meanwhile, Thursday will be an interesting day for Pound Sterling trading with the release of UK Retail Sales and Public Sector Net Borrowing figures—both reports could have a moderate impact on the Pound Sterling to Swiss Franc (GBP/CHF), Pound Sterling to Malaysian Ringgit (GBP/MYR) and Pound Sterling to Turkish Lira (GBP/TRY) exchange rates.
The Pound Sterling to Malaysian Ringgit (GBP/MYR) exchange rate is reaching 5.4390. The Pound Sterling to Turkish Lira (GBP/TRY) exchange rate is trading at 4.0914; the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is trending in the region of 1.4558.
