GBP Sterling to Euro & Pound Dollar Exchange Rates Slow; EUR & USD Forecasts Strong

Modified: Tuesday, 17 June 2014 08:50 BST - Written by Tim Boyer

STORY LINK GBP Sterling to Euro & Pound Dollar Exchange Rates Slow; EUR & USD Forecasts Strong

Pound Euro & Dollar Exchange Rates The Pound Sterling (GBP) advanced to its best exchange rate in 18 months against the Euro (EUR) exchange rate midweek after data released on Tuesday showed that industrial production in the UK advanced by its fastest yearly rate since 2011. The strong report bolstered optimism that the nation’s recovery was exceeding that of the Eurozone.

As of Tuesday 08:45 GMT for Pound Sterling we find the following gainers and losers of the global forex markets:

Losers: The Pound Hong Kong Dollar exchange rate is 0.01pct lower at 13.15868 and the Pound US Dollar exchange rate is 0.02pct lower at 1.69749 GBP/USD.

Gainers: The Pound Australian Dollar exchange rate is 0.45pct higher at 1.81592 GBP/AUD, Pound Canadian Dollar exchange rate is 0.03pct higher at 1.84255 and the Pound Euro exchange rate is +0.14pct higher at 1.25226 GBP/EUR.

Following the previous week’s announcement by the European Central Bank that it had cut interest rates to new record low levels and introduced a negative deposit rate for the Eurozone’s banks the Euro weakened sharply against all of its major peers. As such at the start of the week the Pound was on the ascendency against the single currency.

The Pound made further gains against the Euro

The UK currency then made further gains and remained stronger against the Euro after breaching the 1.24 level on the back of a better-than-expected UK unemployment report. The data released by the Office for National Statistics showed that the nation’s unemployment rate fell to 6.6% the lowest level seen since the end of 2009. The number of people claiming unemployment benefits also fell more-than-forecast, boosting optimism over the health of the UK economy

As the week drew to a close, the Pound advanced to its highest level in 19-months against the Euro after Bank of England Governor Mark Carney said that the Central Bank could raise interest rates from a record low earlier than forecast.


“There’s already great speculation about the exact timing of the first rate hike and this decision is becoming more balanced,” Carney said. “It could happen sooner than markets currently expect.”

Against the US Dollar the currency climbed to its best level in one-month. The Pound could make further gains if today’s construction output data comes in strongly.

The Euro (EUR) to Dollar (USD) exchange rate 4 month low

The Euro declined close to its lowest-level in four-months against the US Dollar at the start of the week as Eurozone’s borrowing costs continuing to fall due to the diverging monetary policies of the European Central Bank and US Federal Reserve.

The Euro remained under significant pressure against its major peers as the currency was broadly weakened by last week’s European Central Bank monetary policy decision. The Euro weakened broadly as Euro zone bonds rallied in recent sessions, highlighting the diverging monetary policy stance between the ECB and other central banks. The Euro could was unable to recover some ground despite the latest Industrial Production data coming in better than forecast.

On Friday the Euro pushed higher against the US Dollar after yesterday’s US data disappointed and industrial production data out of the Eurozone exceeded forecasts. Against the Pound the single currency tumbled to a 19-month low after BoE Governor Mark Carney hinted that interest rates could rise before the end of the year.

Major GBP/EUR events next week

Monday June 16th – Euro inflation rate MoM & YoY
Tuesday June 17th – GB inflation rate
PPI
Retail Price Index
Eurozone- ZEW sentiment index
Wednesday June 18th – GB MPC Meeting Minutes
Eurozone Construction Output
Thursday June 19th – GB Retail Sales MoM and YoY

Latest Pound, Euro & Dollar exchange rates, updated 17/06/2014

The Pound Euro exchange rate is trading up +0.14% at 1.25226 GBP/EUR.
The Pound Dollar exchange rate is trading down -0.02% at 1.69749 GBP/USD.
The Euro Pound exchange rate is trading down -0.13% at 0.79856 EUR/GBP.
The Euro Dollar exchange rate is trading down -0.15% at 1.35554 EUR/USD.
The Dollar Euro exchange rate is trading up +0.15% at 0.73771 USD/EUR.
The Dollar Pound exchange rate is trading up +0.02% at 0.58911 USD/GBP.

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TAGS: Currency Predictions Daily Currency Updates Euro Forecasts