Positive Outlook for GBP/EUR As UK GDP Beats Estimates

Published: 23 Aug at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany, Japan, South Africa,

Pound Sterling
GBP/EUR – Trading in the Region of 1.1698
Although the Pound began the day heading for a five-day decline against the Euro and US Dollar, the British currency is likely to strengthen in the hours ahead as UK GDP and export data exceeded expectations. Economists were anticipating growth of 0.6 per cent in the second quarter of the year but the UK economy actually expanded by 0.7 per cent.

US Dollar
USD/EUR – Trading in the Region of 0.7496
Yesterday’s US employment report, which showed initial jobless claims hitting a five-year low, added to speculation surrounding the Federal Reserve’s tapering timeline. Consequently the US Dollar was able to extend gains against peers including the Yen and Pound. Additional ‘Greenback’ fluctuations may occur in response to today’s US housing figures.

Euro
EUR/USD – Trading in the Region of 1.3340
Although data published this morning showed that the German economy expanded by 0.5 per cent in the second quarter (as forecast by economists) the Euro was slightly softer against the Pound ahead of today’s UK GDP figures. If the UK economy is shown to have grown by more than the 0.6 per cent expected the EUR/GBP pairing could dip before the weekend.

Australian Dollar
AUD/USD – Trading in the Region of 0.8993
With investors speculating that the ‘Aussie’s recent decline had been excessive the currency was able to recoup some losses during Australasian trading. Despite gaining modestly on the ‘Greenback’ overnight the Australian Dollar is still heading for a weekly slump of 2 per cent against the safe-haven asset.

New Zealand Dollar
NZD/USD – Trading in the Region of 0.7811
An absence of influential South Pacific news limited ‘Kiwi’ movement during local trade, although the currency was able to edge away from yesterday’s two-week low against the Australian Dollar. As it stands, the New Zealand Dollar is headed for its biggest five-day drop against its American counterpart since June.

Canadian Dollar
CAD/USD – Trading in the Region of 0.9482
The ‘Loonie’ remains close to a six-week low against the US Dollar today after broadly softening yesterday in response to worse-than-anticipated retail sales figures. Today’s Canadian inflation figures are likely to impact the commodity driven currency further.

Japanese Yen
USD/JPY – Trading in the Region of 98.8600
The Yen was trading in the region of a three-week low against its North American counterpart ahead of the Federal Reserve’s annual conference. It is expected that Bank of Japan Governor Haruhiko Kuroda will use the conference as an opportunity to stress the case for unprecedented levels of fiscal easing.

South African Rand
USD/ZAR – Trading in the Region of 10.2530
The Rand recovered some ground against the US Dollar after being oversold following the Federal Reserve’s meeting minutes and hitting a four-year low against the ‘Greenback’. However, the currency is still heading for a significant five-day decline against its rival and could soften further if today’s US housing data is positive.
As of Friday, 23rd August 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1635, GBP USD exchange rate was 1.5569, GBP AUD exchange rate was 1.7247, GBP NZD exchange rate was 1.9951, GBP CAD exchange rate was 1.6341, GBP JPY exchange rate was 153.6886, and GBP ZAR exchange rate was 15.9475.

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