British Pound to Euro (GBP/EUR), Rupee (GBP/INR) and Australian Dollar (GBP/AUD) Exchange Rate Forecast – UK CPI, Employment Stats in Focus
While concerns relating to the upcoming UK General Election are having an impact on the Sterling exchange rate, the British Pound to Euro (GBP/EUR), British Pound to Indian Rupee (GBP/INR) and British Pound to Australian Dollar (GBP/AUD) exchange rates all gained on Monday.
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British Pound to Euro (GBP/EUR) Exchange Rate Forecast – Greek Concerns Limit Euro Demand
After advancing to trend around the 1.38 level at the close of last week, the British Pound to Euro (GBP/EUR) exchange rate extended gains during Monday’s European session.
The Pound advanced by 0.4% against its common currency rival to hit a high of 1.3864 as investors remained dubious about Greece’s ability to present its creditors with a suitable list of reforms within the allotted timeframe.
The Euro might be able to recover losses against the Pound on Tuesday if the Eurozone’s industrial production report shows the improvement expected.
Economists have forecast that production increased by a seasonally adjusted 0.4% on the month in February following January’s -0.1% decline.
British Pound to Indian Rupee (GBP/INR) Exchange Rate Forecast – Indian Inflation Data Ahead
Prior to the publication of India’s trade balance and inflation reports, the British Pound to Indian Rupee exchange rate was trending around 91.3160 – unchanged on the day’s opening levels.
The GBP/INR exchange rate had previously hit a high of 91.3640.
As the Reserve Bank of India (RBI) has stated that it will be using upcoming inflation figures to dictate changes to fiscal policy, the Rupee could experience considerable movement following that particular report’s release.
British Pound to Australian Dollar (GBP/AUD) Exchange Rate Forecast – Sterling Surges after Chinese Trade Data
During the Australasian session, the British Pound to Australian Dollar (GBP/AUD) exchange rate achieved a high of 1.9324 after leaping by more than 1% in the wake of China’s trade figures.
The Australian Dollar weakened across the board as China’s trade numbers showed that the level of both exports and imports fell by more-than-expected, resulting in a pronounced narrowing of the trade surplus.
As China is Australia’s main trading partner, the report reduced demand for the ‘Aussie’. The data also prompted a sell-off in other commodity-driven currencies like the New Zealand Dollar and Canadian Dollar.
Overnight the National Australia Bank (NAB) business conditions/confidence figures could cause further GBP/AUD movement.
On Tuesday the GBP/EUR, GBP/INR and GBP/AUD exchange rates are all likely to fluctuate in response to the publication of the UK’s latest inflation figures.
Economists are projecting an annual inflation figure of 0.0%, unchanged from the number recorded the previous month. Should consumer price gains actually accelerate, it would support the case in favour of the Bank of England (BoE) bringing forward its timeline for increasing interest rates and help the Pound continue trending higher.
However, a move into deflation would have the reverse impact and could see the Pound move back towards the 1.36/1.37 level against the Euro.
Investors with an interest in the British Pound will also be focusing on this week’s influential UK employment figures.
A decline in the UK’s unemployment rate, or an increase in average earnings, would be Sterling supportive.
On Monday the British Pound to Euro (GBP/EUR) exchange rate was trading in the region of 1.3849, the British Pound to Indian Rupee (GBP/INR) exchange rate as trading in the region of 91.2540 and the British Pound to Australian Dollar (GBP/AUD) exchange rate was trading in the region of 1.9276.