GBP/EUR/USD Exchange Rates Forecast to Strengthen on UK Retail Sales, Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast to Decline on Dovish Fed
The Pound Sterling to Euro (GBP/EUR) exchange rate strengthened by around 0.81% on Thursday. The Pound Sterling to US Dollar (GBP/USD) exchange rate advanced by around 0.33%. This is as a result of seasonal shopping boosting British retail sales. The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate dived by around -0.34% as a result of the Federal Reserve postponing a cash rate increase.
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Pound Sterling (GBP) Exchange Rate Climbs on Retail Sales
November’s British retail sales increased significantly thanks to seasonal purchasing. Year-on-year Retail Sales was forecast to drop from 4.9% to 4.5%, but the actual result advanced to 6.9%. Rob Wood, chief UK economist at Berenberg bank, said the falling oil price was ‘like a big tax cut for consumers’, and UK consumers tend to spend extra income.
Euro (EUR) Exchange Rate Dives on SNB Rate Cut
The Pound Sterling to Euro exchange rate is currently trending in the region of 1.2719.
In the aftermath of a decision by the Swiss National Bank (SNB) to introduce negative interest rates, the shared currency slumped against its major peers. In an attempt to secure the currency’s cap and safe-haven status, the SNB’s latest stimulus initiative has spurred anxieties that the European Central Bank will be forced to intervene with stimulus of their own.
Swissquote analyst Peter Rosenstreich described the move as ‘no silver bullet’ and said the SNB will face pressure in the long-term to take more action. ‘Clearly this was a signal to the markets that despite growing pressure on EUR/CHF and expectations that ECB actions will drive more capital into Switzerland, the SNB remains steadfast in defending the floor. Even becoming proactive.’
The Pound Sterling to Euro exchange rate has trended between a range of 1.2618 and 1.2734.
US Dollar (USD) Exchange Rate Softens on Unwarranted Gains
The Pound Sterling to US Dollar exchange rate is currently trending in the region of 1.5634.
In anticipation of a hawkish Federal Open Market Committee at the Federal Reserve’s latest meeting, traders bought into the US Dollar in droves. The significant upsurge turned out to be unjustified, however, after the FOMC did little more than retire some tired rhetoric.
The Pound Sterling to US Dollar exchange rate has trended between a range of 1.5545 and 1.5666.
Australian Dollar (AUD) Exchange Rate Rallies on Dovish Fed
The Pound Sterling to Australian Dollar exchange rate is currently trending in the region of 1.9118.
After the Federal Reserve disappointed rate hawks, demand for higher-yielding assets surged. Despite domestic data having little impact on proceedings, the ‘Aussie’ (AUD) strengthened against its major peers thanks to its high-yield potential.
The Pound Sterling to Australian Dollar exchange rate trended within a range of 1.9013 and 1.9193.