GBP-USD Exchange Rate Trending in Narrow Range Today, GBP-EUR Moves Further from Best Conversion Rate
While the UK's latest growth figures are likely to be the main cause of both GBP/EUR, GBP/USD exchange rate movement today, investors with an interest in 'Cable' will also be looking to the UK's Markit Services PMI and Consumer Confidence data for guidance. Positive US data would boost bets for a hawkish policy statement from the FOMC on Wednesday and could drive the 'Greenback' higher.
Earlier...
The Pound Sterling to Euro (GBP/EUR) exchange rate posted a decline of over -0.8% on Monday as investors bought into the common currency off the back of encouraging German confidence data and the semblance of further progress in the Greek bailout negotiations. The Pound was also trading in a softer position against several of its other most-traded currency counterparts ahead of tomorrow’s UK GDP report as last week’s soft domestic retail sales data weighed on BoE interest rate hike speculation.
A quick foreign exchange market summary before we bring you the rest of the report:
On Thursday the Euro to British Pound exchange rate (EUR/GBP) converts at 0.858
Today finds the pound to euro spot exchange rate priced at 1.165.
The live inter-bank GBP-CAD spot rate is quoted as 1.71 today.
The pound conversion rate (against australian dollar) is quoted at 1.921 AUD/GBP.
The live inter-bank GBP-USD spot rate is quoted as 1.249 today.
Please note: the FX rates above, updated 25th Apr 2024, will have a commission applied by your typical high street bank. Currency brokers specialise in these type of foreign currency transactions and can save you up to 5% on international payments compared to the banks.
UK GDP Could Push Pound Higher, UBS Provides GBP/USD Exchange Rate Prediction
While the Pound was trading in a softer position against the Euro and Australian Dollar, the British currency was left trending in a narrow range against the ‘Greenback’.
In the opinion of analysts with UBS, this is one way to approach GBP/USD exchange rate trading; ‘The market expects a pickup in growth from GDP data scheduled tomorrow, and we believe downside in the Sterling is limited for now. We prefer buying on dips heading into the GDP data.’
However, the Pound Sterling to US Dollar (GBP/USD) exchange rate may also experience volatility later today as a result of the US Durable Goods Orders data. As one of the ecostats which has an effect on the monetary policy stance adopted by the Federal Open Market Committee (FOMC), today’s report will be of particular interest ahead of Wednesday’s interest rate decision.
The GBP to USD exchange rate was moving between highs of 1.5545 and lows of 1.5488Euro to Pound Sterling (EUR/GBP) Exchange Rate News Three Years on From Draghi’s Pledge
Back in 2012 Greece was dominating the headlines and the prospect of a Grexit was on the cards (sound familiar?). With the situation looking fairly desperate, European Central Bank (ECB) President Mario Draghi vowed to do whatever it took to support the currency bloc – and three years on he’s just about managed to hold the monetary union together.
As stated by Bloomberg, after vowing to do ‘whatever it takes’ Draghi ‘created the Outright Monetary Transactions program, which -- although never tapped -- served to quell the risk of contagion when Greece blew up again. Markets were also anesthetized as he slashed interest rates to almost zero and finally persuaded his colleagues to sign up to quantitative easing. In seeking to protect his 19-nation economy, Draghi transformed the ECB from a reactive central bank to a modern proactive one. Gone is the institution of 2008 and 2011 which hiked interest rates even in the face of a slumping economy and which focused on inflation alone.’
While the Euro is trending in a weaker position against both the US Dollar and Pound now than in 2012, the common currency recovered some of its recent losses on Monday as Greek bailout negotiations continued with none of the drama we’ve come to expect over the past six months. Should the Hellenic nation be granted funding in time to make its upcoming repayment to the European Central Bank (ECB), we may see the Euro enjoy a notable uptrend.
The Pound Sterling to Euro exchange rate fell to a low of 1.3968 today.