UK Confidence Climbs but GBP/EUR Holds Declines Today, GBP/USD Down
Pound Sterling little changed against Euro, US Dollar after GDP data – Jackson Hole in Focus
British Pound to Euro exchange rate news – Sterling ends week lower as BoE rate speculation reigns
The British Pound to Euro exchange rate began the week trending in the region of 1.40 but experienced a dramatic tumble in the wake of the ‘Black Monday’ chaos.
After hitting a 3 ½ month low, the GBP/EUR currency pair edged back towards 1.37 as the week progressed and investors digested the impact the recent volatility is likely to have on the policy outlooks of major central banks.
While the Bank of England (BoE) is now expected to refrain from adjusting borrowing costs until after the first quarter of next year, the European Central Bank (ECB) may introduce additional easing measures to support inflation in the Eurozone.
On Friday the Pound was trending in the region of 1.36 against the Euro despite the UK’s GfK Consumer Confidence index revealing an unexpected increase in sentiment and the nation’s second quarter growth data confirming the 0.7% rate of quarterly expansion expected by economists.
Before the weekend Germany’s Consumer Price Index may inspire a final flurry of GBP/EUR movement.
Investors will also be focusing on the Jackson Hole symposium in Wyoming and attending to any rate-related remarks issued by central bankers.
The British Pound to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3641
British Pound to US Dollar exchange rate news – US GDP exceeds forecasts, when will the Fed hike rates?
The US Dollar posted widespread gains on Thursday as the US Gross Domestic Product for the second quarter massively exceeded expectations.
With the world’s largest economy being shown to have expanded by 3.7% in the second quarter rather than the 2.3% initially estimated, speculation surrounding when the Fed is likely to adjust borrowing costs was reignited and demand for the ‘Greenback’ increased.
However, as central bankers are expected to reference the recent upheaval in China during the Jackson Hole Symposium and perhaps offer some guidance about the path interest rates are likely to take as a result of the developments, US Dollar gains were limited.
Today’s US Personal Consumption Expenditure report and University of Michigan Confidence index could keep the ‘Greenback’ trending higher if they print well.
The British Pound to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5386
Euro to US Dollar (EUR/USD) exchange rate news – German CPI in focus
As the ‘Black Monday’ drama saw the Euro emerge as something of a safe-haven in the currency market, the Euro to US Dollar (EUR/USD) exchange rate was able to hold its own in spite of the US Dollar’s gaining in response to positive growth data.
The EUR/USD currency pair advanced over 0.3% during the European session despite Eurozone confidence figures showing mixed results.
The region’s business climate indicator came in at 0.2 in August, down from 0.39 in July, while the Eurozone’s Economic Confidence index rose from 104 to 104.2 and Services Confidence Improved from 8.9 to 10.
Industrial Confidence eased from -2.9 to -4 in August.
Further EUR/USD exchange rate volatility could follow the publication of Germany’s Consumer Price Index and the US Personal Consumption data.
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1293.