Pound Sterling (GBP) Exchange Rate Subject to Foreign Currency Movement; Forecast to Strengthen
With a distinct lack of significant, market moving domestic data, the Pound Sterling (GBP) has been subject to changes in foreign currency movement. A slight appreciation can be attributed to a positive score from the solitary British economic data publication. The Lloyds Business Barometer increased from 35 to 42.
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Sterling (GBP) Softens against Euro (EUR) on German Data
The Pound Sterling to Euro exchange rate is currently trending in the region of 1.2605.
Thursday’s German economic data has printed relatively positively, allowing the single currency to appreciate against the Pound. Unemployment Change eclipsed predictions of only 1,000 fewer unemployed, with the actual result showing a drop by -14,000. Seasonally adjusted Unemployment Rate equalled the previous figure of 6.6%, avoiding the median market increase to 6.7%.
In addition, the German Consumer Price Index met with the median market forecast of a drop from 0.8% to 0.6%, and the EU-Harmonised German CPI equalled the market consensus of a drop from 0.7% to 0.5%.
Pound (GBP) Declines against US Dollar (USD) on Damp Risk Sentiment
The Pound Sterling to US Dollar exchange rate is currently trending in the region of 1.5745.
After data out of China printed poorly, trader risk sentiment has dissolved. Despite a complete absence of domestic data, the US Dollar has strengthened against the Pound thanks to its safe-haven qualities.
Pound Sterling (GBP) Drops against Australian Dollar (AUD) on PBOC Easing
The Pound Sterling to Australian Dollar exchange rate is currently trending in the region of 1.8406.
In the aftermath of the decision by the People’s bank of China to suspend sales of repurchase agreements, the Australian Dollar strengthened significantly against the Pound. This is due to the potential for cheaper trade.
In addition to the gains made from the PBOC loosening monetary policy, Australian economic data printed positively. New Home Sales saw a monthly increase from 0.0% to 3.0% in October. Also, Private Capital Expenditure avoided the median market forecast of a drop from 1.6% to -1.9%, with the actual result only dropping to 0.2%.