The British Pound (GBP) was able to build a little momentum vs Euro (EUR), Australian Dollar (AUD) and US Dollar (USD) as the week started, supported by a lack of confidence in the Euro-zone.
The Pound to euro exchange rate made advances towards 1.2640, which represents the best forex level achieved in six days, while the Pound advanced through 1.6150 versus the US Dollar.
Forex Rates Today: (21/10/214)
- The Pound to Euro exchange rate converts -0.06 per cent lower at 1 GBP is 1.26193 EUR.
- The Pound to Dollar exchange rate today is converting +0.07 per cent higher at 1.61658 GBP/USD.
Note: these are inter-bank forex rates to which margins are applied when sending money abroad - speak to a recommended FX provider to lock in the best foreign exchange rates.
British Pound Forecasters Eye UK Data
The latest Ernst & Young economic forecasts suggested a potential slowing of the UK economy for 2015, which reinforced market concerns surrounding a possible loss of momentum, which would also undermine fiscal targets.
The economic data released in the UK will be watched very closely this week with the retail sales and government borrowing data important in order to assess underlying economic trends.
The latest MPC minutes will also be important with a significant shift in sentiment if there is a change in the voting pattern from the 7-2 seen at the previous two meetings.
The British Pound (GBP) gained underlying support from a net improvement in risk conditions and held firm in the region of 1.6180 USD early this morning.
The Euro was confined to relatively narrow trading ranges on Monday with the Dollar generally subdued.
At a meeting between French and German finance officials, there was a commitment to boost growth through investment spending, although there was no mention of specific proposals, amid speculation that there would be a secret deal to let France miss its budget deficit targets.
The ECB started its covered-bond purchasing program, which had some soothing impact on peripheral bond yields.
There were no significant comments from U.S Federal Reserve officials during the day with markets overall slightly more confident that tapering would end as scheduled this month.
The latest U.S economic data will be watched closely this week with the latest consumer price inflation report on Wednesday taking on added significance, especially with investors speculating over the timing of the first rate increase.
Data Released 21st October 2014
U.K 09:30 PSNB Ex-Interventions (September)
U.S 15:00 Existing Home Sales (September)