Pound Sterling Exchange Rates Flat
Pound Sterling (GBP) exchange rates traded in a stable range with little fresh impetus yesterday. However, we could see demand for the British currency rise this morning if manufacturing and industrial data prints positively.
Traders are primed for an acceleration from 0.1% to 0.3% in manufacturing production and a jump from 0.0% to 0.4% in industrial output.
Anything stronger could set up a nice opportunity for Sterling buyers, while anything lower could drag on demand for the Pound. It will also be interesting to see whether the November trade balance meets expectations of -£10.9 billion.
If the deficit comes in significantly higher it could put Chancellor Philip Hammond’s hopes of meeting his 2017⁄18 fiscal target in jeopardy.
Data Affecting Today’s GBP/EUR Forecast
09:30 GBP Manufacturing Production (MoM) (NOV)
09:30 GBP Industrial Production (MoM) (NOV)
09:30 GBP Visible Trade Balance (Pounds) (NOV)
GBP/EUR Exchange Rate Hits 3-Week High
The Pound to Euro (GBP/EUR) exchange rate briefly struck a fresh three-week high yesterday but the pair traded flatly throughout the majority of the session.
The single currency failed to gain ground on an encouraging jobs report showing that unemployment in the currency bloc slid from 8.8% to a near-nine-year low of 8.7% in November.
At seasonally adjusted levels, the Czech Republic (2.5%), Malta (3.6%) and Germany (3.6%) celebrated the lowest levels of joblessness, while at the other end of the spectrum Italy (11.0%), Spain (16.7%) and Greece (20.5%) suffered much higher rates of unemployment.
The next ecostat due for release related to the Euro is Thursday’s morning’s industrial production report, which is tipped to have risen from 0.2% to 0.8% in November.
The European Central Bank’s policy meeting minutes could also impact the Euro, especially if officials give any clues on the future path of policy.
GBP/USD Exchange Rate Bounces Lower from 3-Month High
The Pound to US Dollar (GBP/USD) exchange rate tumbled by around half a cent yesterday in what appeared to be the consequences of profit-taking following the near-three-month high struck at the start of the week.
There were no data releases of note related to either currency yesterday, but we could see GBP/USD respond with more sensitivity to today’s UK factory output scores.
Sterling could easily strike another multi-month peak if the manufacturing and industrial sector prints impress, while an underwhelming set of results could lead to further corrections in ‘Cable’.
GBP/CAD Exchange Rate Holds Steady as Oil Hits 2015 High
Sterling fluctuated around 70 pips against the Canadian Dollar (GBP/CAD) yesterday, ultimately ending the London session close to opening levels.
A fall in US crude oil stocks drove oil prices to fresh 2015 highs, however, on this occasion the spike in oil prices did not correspond to a rally in favour of the commodity-correlated ‘Loonie’.
GBP/AUD Exchange Rate Flat, RBA to Affect Forecast
It was an uneventful day for the Pound to Australian Dollar (GBP/AUD) exchange rate yesterday. Having dropped six cents in December, GBP/AUD has since settled in a tight range.
Traders will be looking to Reserve Bank of Australia rate rises to send the ‘Aussie’ higher, while signs of progress in Brexit could bolster the appeal of the Pound.
GBP/NZD Exchange Rate Hits Fresh 2-Month Low
The Pound to New Zealand Dollar (GBP/NZD) exchange rate tumbled to a fresh two-month low yesterday and is trading close to troughs not seen since the 20th of October.
If sentiment continues to favour the ‘Kiwi’, we could easily see further declines in GBP/NZD over the coming days and weeks.