Exchange Rates: Pound Euro & Pound Dollar Struggle; Sterling GBP Forecast Improves

March 11, 2014 - Written by David Woodsmith

STORY LINK Exchange Rates: Pound Euro & Pound Dollar Struggle; Sterling GBP Forecast Improves

The Pound Sterling (currency : GBP) has once again struggled to assert itself against the other major global currencies during today’s session, with the Pound euro exchange rate spending most of the day changing hands at below the 1.2000 GBP/EUR threshold, while the Sterling US Dollar exchange rate briefly traded down in the 1.6500s GBP/USD earlier on.

However, there were a few chinks of light from the UK economy which provided encouragement for investors holding Sterling-denominated assets. The latest manufacturing and industrial production numbers from the UK were nothing much to write home about, printing much as per expectations, however it was a surprise report from a leading UK recruitment firm which served to improve sentiment towards the Pound. The missive from ManPowerGroup UK observed that the recent floods which saw large parts of the South of England under water, have afforded the British jobs market an ‘unexpected boost’. ManPower estimates that the repair work for building contractors will add over a quarter of a million Pounds to the UK’s GDP this year and went on to suggest that the UK’s labour market has now reached a ‘turning point’.

The positive news for UK PLC followed another report earlier in the week, this time from the British Chambers of Commerce (BCC), which predicted that Britain’s Gross Domestic Product will rise above its 2008 levels for the first time since the credit crisis. The BCC also upped its 2014 GDP growth forecast for the UK economy from 2.7% to a respectable 2.8%. This assertion was backed-up by this afternoon’s NIESR GDP growth forecast from last month’s rolling quarterly reading of 0.7% up to 0.8% this month. The news provides some hope that the Pound may recommence its move higher against the other major global currencies later this year, but the BCC’s assertion that youth joblessness remains at an ‘unacceptably high level’ could serve to anchor Sterling moving forward.

Important Pound Sterling, Euro, US Dollar Exchange Rates (Publish: 11:00 GMT 11/03/2014)

The Pound Sterling to Euro exchange rate is trading up +0.02% at 1.19927 GBP/EUR.
The Pound Sterling to US Dollar exchange rate is trading down -0.04% at 1.66323 GBP/USD.
The Euro to Pound Sterling exchange rate is trading down -0.02% at 0.83384 EUR/GBP.
The Euro to US Dollar exchange rate is trading down -0.05% at 1.38687 EUR/USD.
The US Dollar to Euro exchange rate is trading up +0.05% at 0.72105 USD/EUR.
The US Dollar to Pound Sterling exchange rate is trading up +0.03% at 0.60124 USD/GBP.

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TAGS: Currency Predictions Dollar Pound Forecasts Euro Forecasts Euro Pou Forecasts