Foreign Exchange Report : GBP EUR Refuses To Break Higher Despite Positive UK Retail Sales Data
18 Nov 2011 at 8 AM - Written by John Cameron
The Pound Euro exchange rate (GBP EUR) is 1.1700. The Pound Dollar exchange rate (GBP USD) is 1.5787. The Pound Australian Dollar exchange rate (GBP AUD) is 1.5801.
There was a much-needed boost for Britain’s ailing economy with the release of October’s UK Retail Sales figures yesterday morning. The British shop sales numbers showed a monthly increase of 0.6% - the same increase as had been seen in September. This surprised analysts, who had predicted that the figures would show that there had been a monthly contraction in UK retail sales last month.
Elsewhere, there was more dire news for the Eurozone, as the latest Spanish bond auction took place. The Iberian debt sale saw yields on 10-year Spanish bonds rise to 6.975% - their highest level since 1997, before the Euro was even a twinkle in Continental politicians’ eyes.
Interest rates above 7% on government debts are generally considered to be untenable in the medium term, so Spain’s fiscal position is teetering on the edge of the ‘danger zone’.
Given these developments, analysts would have expected the GBP EUR exchange rate to make a run at its 8-month high of 1.1785, which it reached last week. The fact that the pair traded resolutely in the 1.16s throughout almost all of yesterday’s session, provides a sternly bearish signal. As the old market adage states, ‘what should go up and doesn’t go up, can only come down…’
Today sees a relatively light schedule of tier one data releases, so relative risk appetite is likely to continue to determine levels in the market. If the ‘risk off’ environment continues to prevail, causing further losses for global stock indices, then expect the GBP USD rate to edge further downwards towards the 1.5500 level and the GBP AUD and GBP NZD rate to test higher.
For other live currency exchange rates and a currency converter see the currency news website.
STORY LINK Foreign Exchange Report : GBP EUR Refuses To Break Higher Despite Positive UK Retail Sales Data
Foreign Exchange Report : GBP EUR Refuses To Break Higher Despite Positive UK Retail Sales Data
There was a much-needed boost for Britain’s ailing economy with the release of October’s UK Retail Sales figures yesterday morning. The British shop sales numbers showed a monthly increase of 0.6% - the same increase as had been seen in September. This surprised analysts, who had predicted that the figures would show that there had been a monthly contraction in UK retail sales last month.
Elsewhere, there was more dire news for the Eurozone, as the latest Spanish bond auction took place. The Iberian debt sale saw yields on 10-year Spanish bonds rise to 6.975% - their highest level since 1997, before the Euro was even a twinkle in Continental politicians’ eyes.
Interest rates above 7% on government debts are generally considered to be untenable in the medium term, so Spain’s fiscal position is teetering on the edge of the ‘danger zone’.
Given these developments, analysts would have expected the GBP EUR exchange rate to make a run at its 8-month high of 1.1785, which it reached last week. The fact that the pair traded resolutely in the 1.16s throughout almost all of yesterday’s session, provides a sternly bearish signal. As the old market adage states, ‘what should go up and doesn’t go up, can only come down…’
Today sees a relatively light schedule of tier one data releases, so relative risk appetite is likely to continue to determine levels in the market. If the ‘risk off’ environment continues to prevail, causing further losses for global stock indices, then expect the GBP USD rate to edge further downwards towards the 1.5500 level and the GBP AUD and GBP NZD rate to test higher.
For other live currency exchange rates and a currency converter see the currency news website.
TAGS: American Dollar Forecasts Australian Dollar Forecasts Daily Currency Updates Euro Forecasts New Zealand Dollar Forecasts Pound Australian Dollar Forecasts Pound Dollar Forecasts Pound Euro Forecasts Pound New Zealand Dollar Forecasts Pound Sterling Forecasts
Leave a Comment
Related Stories:
- Kiwi Dollar Claws Back Ground in the Currency Markets as Stock Markets Register Gains - May 21, 2012
- Swiss Franc Expected To Weaken With Euro As Greek Fears Refuse To Dissipate - May 18, 2012
- Daily Rate Predictions For The US Dollar, Euro, Pound Sterling and Japanese Yen - May 17, 2012
- Today’s Rate Forecasts For The Pound Sterling, Euro, US Dollar and Australian Dollar - May 16, 2012
- Exchange Rate Predictions For The Pound Sterling, Euro, US Dollar and Hong Kong Dollar - May 15, 2012
- Currency Exchange Rate Forecasts For The Euro, Pound Sterling, US Dollar and Turkish Lira For Today - May 14, 2012
- Today’s Currency Exchange Rate Predictions For The Euro, Pound Sterling, US Dollar and Arab Emirates Dirham - May 11, 2012
- Pound US Dollar Exchange Rate Recovers Slightly As Greek Anti-Bail-Out Power Bid Fails - May 10, 2012
- Daily Exchange Rate Predictions For The Euro, Pound Sterling, US Dollar and Indian Rupee - May 9, 2012
Latest News:
- Kiwi Dollar Claws Back Ground in the Currency Markets as Stock Markets Register Gains - May 21, 2012
- Official Confirms That EC and ECB Are Drawing Up Plans For Greece’s Eurozone Exit, Yet GBP EUR Rate Drops - May 21, 2012
- Swiss Franc Expected To Weaken With Euro As Greek Fears Refuse To Dissipate - May 18, 2012
- Spanish Bond Yields Soar As Investors Fear Hard Default By Greece - May 18, 2012
- Daily Rate Predictions For The US Dollar, Euro, Pound Sterling and Japanese Yen - May 17, 2012
- Australian and New Zealand Dollars Weaken Again As Bank of England Slashes UK Growth Forecast - May 17, 2012
- Today’s Rate Forecasts For The Pound Sterling, Euro, US Dollar and Australian Dollar - May 16, 2012
- Pound Euro Exchange Rate Spirals As Greece Heads For Second General Election - May 16, 2012
- Exchange Rate Predictions For The Pound Sterling, Euro, US Dollar and Hong Kong Dollar - May 15, 2012
- Pound Euro Exchange Rate Breaches 1.2500 For First Time Since 2008 As Greek Debt Fears Heighten - May 15, 2012
Daily Market Updates
Major Currency Forecasts
- Pound Sterling Forecast
- Euro Forecast
- American Dollar Forecast
- Australian Dollar Forecast
- Japanese Yen Forecast
- Swiss Franc Forecast
- New Zealand Dollar Forecast
- Canadian Dollar Forecast
- Norwegian Krone Forecast
- South African Rand Forecast
- Indian Rupee Forecast
- Singapore Dollar Forecast
- UAE Dirhams Forecast
- Turkish Lira Forecast
- Hong Kong Dollar Forecast
Currency Pairs
- Pound Euro Forecast
- Pound Dollar Forecast
- Pound Australian Dollar Forecast
- Pound Yen Forecast
- Pound Swiss Franc Forecast
- Pound NZ Dollar Forecast
- Pound Canadian Dollar Forecast
- Pound Krone Forecast
- Pound Rand Forecast
- Pound Rupee Forecast
- Pound Sing Dollar Forecast
- Pound Dirham Forecast
- Pound Lira Forecast
- Pound HK Dollar Forecast
