Pound Sterling to Hong Kong Dollar (GBP/HKD) Exchange Rate Trending Higher on Riots
As the riots in Hong Kong look to continue with no end in sight, the Hong Kong Dollar has depreciated against all of its most traded currency competitors. Despite mixed results in British economic data the Pound has advanced against the Hong Kong Dollar as the riots weigh heavily on trader anxieties.
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The Pound Sterling to Hong Kong Dollar exchange rate is currently trending in the region of 12.5235.
In the aftermath of dovish comments made by Bank of England chief economist Andy Haldane at the tail-end of last week, the Pound has generally softened against its major peers. Haldane stated that with the combination of falling inflation, slow wage growth and global economic disparity a benchmark rate hike is not likely to occur anytime soon.
This statement was in direct contrast to a speech made by BoE policymaker Martin Weale who pushed for a rate hike in the near-future in anticipation of wage growth and the inflationary pressure that would bring.
The Hong Kong Dollar has struggled to recover from continuous depreciation amid global economic growth disparity, geopolitical tensions and domestic riots. In particular, the domestic student-led riot has stymied Hong Kong Dollar advances.
The Pound Sterling to Hong Kong Dollar exchange rate has fallen to a low today of 12.4751.
On Monday the Pound has softened against some of its rivals after the publication of UK house price data. The Rightmove report showed month-on-month House Prices growth of 2.6% in October, up from growth of 0.9% in September, but the yearly score declined from 7.9% to 7.6%.
Additional Sterling losses could be attributed to the unknown in regard to a move by the Intercontinental Exchange Inc. (ICE) attempts to standardise British bank’s range of Libor calculation methods.
Domestic data pertaining to Hong Kong on Monday has had little effect on overshadowing anxieties over the riots. Unemployment Rate met with the median market forecast and equalled the previous figure of 3.3%.
On Monday renewed fears that the domestic riots in Hong Kong have a long way to go before conclusion has hindered the potential progress the Hong Kong Dollar could have made from an unchanged unemployment rate.
A report in Shanghai Daily stated; ‘The Occupy Central protests has entered their forth week, causing more impatience among the members of the public in China’s Hong Kong, with district councillors presenting a co-signed open letter to demand resumption of social order.’
The report went on to say; ‘Gonvenor of the Executive Council W K Lam said on Monday that it was too ambitious to expect government officials and student representatives to reach an agreement on political reform during the meeting.’
Pound Sterling to Hong Kong Dollar Exchange Rate Forecast to Decline
Until the domestic riots in Hong Kong have subsided there is little room for a HKD appreciation. No matter what results come from domestic data the GBP/HKD exchange rate will continue to advance as the riots overshadow economic statistics.