Pound Sterling to Euro (GBP/EUR), Indian Rupee (GBP/INR) Exchange Rate Forecasts – Pound Fluctuates in Build up to UK Election
While the Pound Sterling to Euro (GBP/EUR) exchange rate advanced on Tuesday, the Pound Sterling to Indian Rupee (GBP/INR) currency pair recorded a 0.25% decline as UK data fell short and election speculation dented demand.
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Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast – Greek Negotiations Limit Euro Gains
Last week the Pound Sterling to Euro (GBP/EUR) exchange rate took a serious dive, moving from a high of 1.40 to lows of 1.35 as investors responded to the news that the Eurozone exited deflation while the UK’s Manufacturing Output slowed.
However, with a weekend of talks between the Eurozone and its creditors yielding few results and Monday’s Manufacturing PMI’s for the currency bloc’s largest economies highlighting concerns in France, the GBP/EUR exchange rate was able to return to trending in the region of 1.3595.
Although the final manufacturing figures for Germany and the Eurozone as a whole showed improvement, the French index was revised down from 48.4 to 48.0 – highlighting some major ongoing weaknesses in the Eurozone’s secondary market.
GBP/EUR gains were tempered by the UK’s Construction PMI however, which unexpectedly fell from 57.8 to 54.2.
In the week ahead speculation surrounding the possible outcome of the UK general election is likely to keep Sterling under serious pressure. That being said, the Pound Sterling to Euro (GBP/EUR) exchange rate could continue trending higher if it appears that the situation in Greece is no closer to being resolved.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast – Rupee Steady before Services Stats
Prior to the publication of India’s Services PMI for April, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate was trading in the region of 96.2460, little changed from the day’s opening level.
Even though the UK’s Construction PMI fell short, the Rupee failed to post a notable gain against its British peer and the GBP/INR exchange rate soon recovered from the 96.4880 low recorded following the report’s publication.
The Rupee was able to advance on the US Dollar however as US data showed that the nation’s trade deficit widened by considerably more than expected in March.
The US Markit Composite and Services PMIs for April were also negatively revised from previous forecasts, although the US Dollar’s downtrend was slowed by an encouraging ISM Non-Manufacturing Composite reading.
Tomorrow both India and the UK are set to publish Services PMI’s.
India’s index is believed to have fallen from 53.0 in March to 51.0 in April – a result which would be Rupee-negative if proven accurate.
However, the UK’s own services gauge is also expected to show a decline, with economists envisaging a slide to 58.5 from 58.9.
As political uncertainty will also be affecting demand for the Pound in the run up to the UK general election, the GBP/INR exchange rate may well continue trading in a narrow range as the week progresses.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trading in the region of 1.3598 and the Pound Sterling to Indian Rupee (GBP/INR) exchange rate was trading in the region of 96.3200.