GBP/USD, GBP/EUR exchange rates fall on below-forecast retail sales
Sterling loses ground as consumer spending climbs by less-than-expected
British Pound to Euro exchange rate news – GBP/EUR back to 1.40
Wednesday saw investors’ earlier enthusiasm towards Tuesday’s sturdy UK CPI print fade and the Pound eased lower against several of its main rivals.
The GBP/EUR pairing also fell back to 1.40 in response to the news that German MPs voted to approve the terms of the Greek bailout. With the backing of European officials, the Hellenic nation was finally able to unlock emergency funding and managed to make its repayment to the European Central Bank (ECB) on time.
While some investors are now concerned about possible political upheaval in the nation as calls for an election are growing, the Euro was still able to benefit from the latest Greek development.
Meanwhile, demand for the Pound eased on Thursday after UK retail sales including auto-fuel figures fell short of forecasts. Monthly sales growth of just 0.1% was recorded in July, a lot lower than the 0.4% figure expected. This resulted in the annual reading holding at 4.2% instead of climbing to 4.4%. While sales excluding auto-fuel met predictions, the data for June was negatively revised.
The GBP/EUR pairing lost -0.6% after the report was published.
The British Pound to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4026
British Pound to US Dollar exchange rate news – FOMC minutes, UK sales data cause GBP/USD fluctuations
During the North American session the Pound was able to hold its own against the US Dollar as the minutes from the last Federal Open Market Committee (FOMC) meeting highlighted inflation concerns as being a potential barrier to interest rate adjustments.
Investors had been hoping that the Fed would provide a clear signal for when borrowing costs might rise and the disappointing lack of direction inspired ‘Greenback’ losses.
One industry expert noted; ‘My immediate reaction is that it should reduce the probability of a September rate hike a little bit. The bigger point to me is that there’s no evidence of confidence of rising inflation.’
The UK’s subpar retail sales report left ‘Cable’ struggling and further volatility in the pairing may occur later today as the US releases employment and housing data.
The number of people applying for first time unemployment benefits in the US is expected to fall in the week ending August 15th.
The British Pound to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5616
Euro to US Dollar (EUR/USD) exchange rate news – Pairing Climbs 0.2%
A combination of FOMC minutes and the latest Greek news sent the Euro to US Dollar exchange rate trending slightly higher on Thursday.
The announcement that the ESM (Europe’s largest bailout vehicle) presented Greece with enough financial assistance to make its debt repayment to the ECB lent the Euro support against its main rivals.
ESM Managing Director Klaus Regling stated; ‘Today’s ESM disbursement will allow Greece to meet its urgent financial obligations to the International Monetary Fund and European Central Bank, and other budgetary needs. The second sub-tranche of €10 billion will contribute to stabilising the banking sector, whose situation deteriorated sharply after the imposition of capital controls in June.’
The EUR/USD currency pair was little affected by the German Producer Price index for July. As economists projected, the data printed at 0.0% on the month and -1.3% on the year.
While today’s US data may have an impact on the EUR/USD pairing, investors will also be focusing on tomorrow’s German and Eurozone consumer confidence reports.
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1150