Exchange RatesToday: Pound to Euro Gains on British Release; Dollar Forecast Could Fall

Modified: Friday, 25 October 2013 21:27 BST - Written by John Cameron

STORY LINK Exchange RatesToday: Pound to Euro Gains on British Release; Dollar Forecast Could Fall

The latest Pound to US Dollar exchange rate forecast shows the GBP/USD could fall following a positive data set, published in the States yesterday. Meanwhile, Pound to Euro exchange rate (GBP EUR) has moved higher following a strong British data release.

This morning’s UK GDP data provided grounds for encouragement regarding the future prospects of the British economy. The figures revealed that the UK PLC’s economic recovery appears to have gained traction in recent months with GDP expanding by 0.8% during the third quarter of this year. This was higher than the 0.7% growth of the three month period to the end of June. In an additional bonus for investors holding Sterling-denominated assets, the Office of National Statistics, which publishes the closely-watched data, asserted that the performance of the British economy during Q3 had been ‘fairly strong’ across all sectors during this period.

The UK data helped the Pound to euro exchange rate (GBP/EUR) to as high as 1.1756 during the middle part of today’s equities session. Gains for the pair on the day were accentuated by a raft of data from the eurozone’s premier economy, released earlier on today. The latest German IFO Business Sentiment survey came out below par, providing investors holding euro-denominated assets with a ready reason to be nervous. The awkward standoff between the eurozone’s leading players (Germany and France) and the USA regarding America’s apparent ‘listening in’ to private telephone conversations of German Chancellor Angela Merkel and French leaders. The diplomatic wrangle, which looks set to continue for several weeks, has the potential to knock the edge of the euro and US Dollar’s performance in the near-term.

Meanwhile, this afternoon’s US Durable Goods Orders figure for last month printed at a significantly better than anticipated at 3.7% versus market expectations of a showing of 2.3%. The print could provide the US Dollar with significant support moving forward, sending the Pound Dollar exchange rate (GBP/USD) down towards the 1.6000 threshold once more.

Pound Sterling Exchange Rates Today (at time of publish):

The Pound to Australian Dollar exchange rate is trading up 0.12% at 1.6863 GBP/AUD.
The Pound to Canadian Dollar exchange rate is trading up 0.17% at 1.6905 GBP/CAD.
The Pound to Swiss Franc exchange rate is trading up 0.22% at 1.4486 GBP/CHF.
The Pound to Euro exchange rate is trading up 0.01% at 1.1737 GBP/EUR.
The Pound to New Zealand Dollar exchange rate is trading up 0.19% at 1.9463 GBP/NZD.
The Pound to Lira exchange rate is trading up 0.13% at 3.2124 GBP/TRY.

The Pound to Dollar exchange rate is trading down 0.06% at 1.6187 GBP/USD.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts