British Pound to Euro (GBP/EUR), Rupee (GBP/INR), Australian Dollar (GBP/AUD) Exchange Rates Forecast to Hold Retail Sales Gain
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 during the local session as the UK’s impressive retail sales report gave Sterling a boost.
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British Pound to Euro (GBP/EUR) Exchange Rate Forecast to Hold Above 1.40 before IFO Data
After paring its recent gain on the back of hopes that today’s Eurogroup gathering in Riga will see some progress made on the Greek bailout negotiations, the British Pound to Euro (GBP/EUR) exchange rate surged back above 1.40 as Thursday progressed.
The UK’s impressive month-on-month sales gain of 1.2% in April smashed forecasts for an increase of just 0.2% and saw the Pound rally across the board.
Meanwhile, demand for the Euro eased as Germany’s Manufacturing/Services PMIs fell by more-than-expected in May. The Eurozone’s own Services and Composite measures also failed to hit predicted levels and the results justify the European Central Bank’s (ECB) decision to increase the size of its asset purchase programme.
Tomorrow the GBP/EUR exchange rate could experience further fluctuations as German Growth and IFO Business Climate reports are published. Another batch of negative ecostats for the Eurozone’s largest economy would keep the Euro under pressure.
However, if Greece does come a step closer to reaching an agreement with its creditors during the discussions in Riga, the Euro may well recoup recent losses.
British Pound to Indian Rupee (GBP/INR) Exchange Rate Trends Higher Despite Rupee Closing Stronger against US Dollar
Over the course of the European session the UK’s sturdy retail sales report saw the Pound Sterling to Indian Rupee (GBP/INR) exchange rate advance to a high of 99.9140 – climbing more than 0.4% on the day’s opening levels.
Global economic data and US news have been the driving forces behind Rupee movement this week given the lack of Indian ecostats.
With the US Dollar coming under pressure as a result of the slightly dovish Federal Open Market Committee (FOMC) policy meeting minutes and worse-than-expected domestic initial jobless claims figures, the Indian Rupee was able to advance on its safe-haven peer.
Although Indian data is in short supply this week, there are a couple of reports to be aware of next week, including the nation’s first quarter growth figures and infrastructure output number.
British Pound to Australian Dollar (GBP/AUD) Exchange Rate Rallies 0.7%
On Thursday the British Pound to Australian Dollar (GBP/AUD) exchange rate gained in spite of Australia’s Consumer Inflation Expectation being increased from 3.4% to 3.6%.
The ‘Aussie’ came under a little pressure as China’s HSBC Manufacturing PMI printed at 49.1 in May, below the 50 mark separating growth from contraction and less than the expected reading of 49.3.
Economist Wang Tao said of the Chinese manufacturing report; ‘It remains extremely hard if not impossible for any revival to be sustained. Further policy support is still needed to stabilise China’s growth momentum and arrest the passive tightening of monetary conditions.’
The GBP/AUD pairing’s uptrend was then consolidated by the UK’s retail sales report. Australian data is lacking over the rest of the week but China’s Conference Board Leading Index could have an impact on the ‘Aussie’ overnight.
The British Pound to Euro (GBP/EUR) exchange rate was trading in the region of 1.4072, the British Pound to Indian Rupee (GBP/INR) exchange rate was trending in the region of 99.6210 and the British Pound to Australian Dollar (GBP/AUD) exchange rate was trading in the region of 1.9888.