Pound rebounds against Euro, hits 1.54 against US Dollar today
US data supports Fed rate hikes, USD bullish, GBP and EUR fluctuate
British Pound to Euro exchange rate news – GBP/EUR close to 1.37
Yesterday’s positive UK mortgage had little impact on demand for the Pound in the face of revised Bank of England (BoE) interest rate hike projections and the GBP/EUR exchange rate faltered.
The Euro managed to hold its own against Sterling even as a European Central Bank (ECB) official intimated that the central bank would consider increasing stimulus if the inflation outlook was damaged by the Chinese slowdown and resultant stock market slump.
In the view of one industry expert; ‘Given the current level of the equity markets, the Euro is undervalued. If you are just playing off European equities, then you could say we should be buying the Euro. There is a nice negative correlation if you look at the last year. It’s very strong.’
However, the Pound was able recover losses against the common currency on Thursday and return to trending in the region of 1.37 despite the publication of mixed UK house price data.
Should tomorrow’s UK Consumer Confidence and growth data impress, Sterling may end the week in a slightly stronger position.
The British Pound to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3694
British Pound to US Dollar exchange rate news – US Q2 GDP Ahead, Positive Revision Expected
The British Pound to US Dollar exchange rate fell back to trending in the region of 1.54 ahead of the release of the second quarter US growth report.
The GBP/USD pairing tumbled before the close of Wednesday’s European session as investors responded to the unexpectedly strong US Durable Goods Orders report.
With both June and July recording bullish figures, some investors remained hopeful that a Federal Reserve interest rate adjustment could still take place in 2015 despite the recent Chinese upheaval.
Rate bets will be further supported if today’s US GDP figure is revised as expected. Economists are expecting the rate of expansion in the second quarter to be upped from 2.3% to 3.2%.
Other US reports with the potential to inspire ‘Cable’ movement include the US initial jobless/continuing claims figures and Pending Home Sales data.
The British Pound to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5488
Euro to US Dollar (EUR/USD) exchange rate news – Euro tumbles during European session
Although the Euro extended declines against the US Dollar early in Thursday’s European session, the common currency displayed a certain level of resilience in light of yesterday’s comments relating to the potential upping of stimulus in the Eurozone.
That being said, the Euro did come under pressure as Germany’s Import Price Index printed at -0.7% in July, month-on-month. This was over double the -0.3% forecast. On an annual basis the Import Price Index dropped by -1.7%, defying forecasts for an unchanged figure of -1.4%.
While today’s US news is likely to be a major driver of EUR/USD exchange rate movement, investors will also be looking ahead to tomorrow and the publication of Germany’s Consumer Price Index for August. The annual rate of inflation is believed to have eased from 0.2% to 0.1%.
If that proves to be the case, the Euro may well slide before the weekend.
The Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1293.