British Pound Exchange Rate Forecast: GBP/EUR, GBP/INR, GBP/USD Down as Sterling Struggles after Construction Dip
The British Pound recorded losses against the Euro (GBP/EUR), Indian Rupee (GBP/INR) and US Dollar (GBP/USD) on Thursday as UK political concerns continued to undermine demand for the British asset and UK Construction PMI printed below expected levels.
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Yesterday’s UK Manufacturing PMI may have achieved an 8-month high, but the construction equivalent fell from 60.1 to 57.8 in March.
The result was short of forecasts for a reading of 59.8 and piled further pressure on an already struggling currency.
British Pound to Euro Exchange Rate Forecast: Euro Gains as Greece Presents Reforms
While demand for the Pound was limited ahead of tonight’s UK political debate, the common currency was able to strengthen thanks to Wednesday’s impressive manufacturing reports for the Eurozone and its largest economies. The news that Greece presented its creditors with a list of reforms also gave Sterling a boost.
The British Pound to Euro (GBP/EUR) exchange rate lost over 0.5% to trade in the region of 1.3696.
At the moment the response to Greece’s reform plan has been fairly muted, although Greek sources implied that progress is being made.
Given that there are no influential economic reports for the Eurozone scheduled for publication today, it would take a notable announcement relating to the Hellenic nation to instigate additional GBP/EUR movement in the hours ahead.
That being said, if today’s political debate – which will feature representatives from the seven key UK parties – sees one party eke out a lead, the Pound may experience volatility before the weekend.
British Pound to Indian Rupee (GBP/INR) Exchange Rate Down 0.2%
The British Pound to Indian Rupee (GBP/INR) exchange rate hit a lot of 92.0580 on Thursday following the publication of the UK’s disappointing construction report.
The Rupee managed to trade in a stronger position against the Pound despite the fact that India’s HSBC Manufacturing PMI failed to climb by as much as forecast.
The index advanced from 51.2 to 52.1, not quite achieving the 52.8 predicted.
HSBC economist Pollyanna De Lima said of the result; ‘Momentum is building in manufacturing as the sector begins to build up a head of steam. Stronger expansions of output, new orders and stocks of purchases all contributed to a higher PMI reading in March. To add to the good news, all three monitored market groups delivered faster growth, with consumer goods production continuing to lead the way.’
With no further reports for either the UK or India on the cards for today, GBP/INR movement may be limited.
British Pound to US Dollar (GBP/USD) Exchange Rate Forecast to Fluctuate
While the Pound declined against a number of its peers on Wednesday, the British Pound to US Dollar (GBP/USD) exchange rate managed to hold steady as the ‘Greenback’ came under pressure.
The US Dollar softened against rivals like the Euro after both the US ISM Manufacturing index and ADP Employment Change report fell well short of forecasts.
In the hours ahead, the GBP/USD exchange rate is likely to fluctuate in response to the US initial jobless/continuing claims figures and Factory Orders numbers.
If the reports disappoint, adding to the case in favour of the Federal Reserve deferring the first increase in borrowing costs, the Pound could recoup losses against its US peer.
The British Pound to Euro (GBP/EUR) exchange rate is currently trading in the region of 1.3693, the British Pound to Indian Rupee (GBP/INR) exchange rate is currently trading in the region of 92.1560, the British Pound to US Dollar (GBP/USD) exchange rate is currently trading in the region of 1.4832.