Dollar Exchange Rates (USD to GBP, USD to EUR) Plummet as Greek Deal Approaches
The week began with the Pound Dollar exchange rate trending above a key technical support level, but with Fed Chairwoman Janet Yellen asserting that the central bank still intends to increase interest rates before the end of this year, the US Dollar could push the Pound lower over the course of the week. Today's US Monthly Budget Statement may have an impact on GBP/USD trading.
Earlier...
Towards the close of Friday’s European session, the US Dollar to Pound exchange rate dived by around -0.91% as a result of improved risk-appetite. After optimism grew regarding the potential for Greece to secure bailout and remain a member of the Eurozone, and with China’s stock market showing signs of recovery, trader risk sentiment saw dampened demand for safe-haven assets.
A quick foreign exchange rate market summary before we bring you the rest of the report:
On Friday the Euro to British Pound exchange rate (EUR/GBP) converts at 0.857
The GBP to EUR exchange rate converts at 1.166 today.
The pound conversion rate (against canadian dollar) is quoted at 1.709 CAD/GBP.
Today finds the pound to australian dollar spot exchange rate priced at 1.914.
The GBP to GBP exchange rate converts at 1 today.
NB: the forex rates mentioned above, revised as of 26th Apr 2024, are inter-bank prices that will require a margin from your bank. Foreign exchange brokers can save up to 5% on international payments in comparison to the banks.
Dollar (USD) Exchange Rate Forecast to Fluctuate on European Geopolitics
For those trading with the US asset, the coming week will be dictated by proceedings in Europe. Should the Greek proposal be accepted tonight, market sentiment is likely to improve exponentially. Conversely, should the Eurogroup reject Greece’s proposal the prospect of a Greek exit will likely heighten demand for the North American asset.
In terms of US data there will be several significant publications over the coming week with the potential to provoke ‘Greenback’ (USD) volatility, including; University of Michigan Confidence, Consumer Price Index and Advance Retail Sales. Also of significance will be Federal Reserve Chair Janet Yellen’s Semi-Annual Testimony to House Financial Panel which should see policy outlook discussed in detail.
In addition to the data mentioned above; Monthly Budget Statement, Retail Sales Less Auto, NFIB Small Business Optimism, Business Inventories, MBA Mortgage Applications, Industrial Production, Manufacturing (SIC) Production, Initial Jobless Claims, Continuing Claims, Philadelphia Fed., NAHB Housing Market Index, Net Long-term TIC Flows, Housing Starts, Building Permits, Average Weekly Earnings and the Baker Hughes US Rig Count will all have the potential to provoke US Dollar movement.
Forex News Now: Pound Sterling (GBP) Exchange Rate Forecast to Fluctuate on Economic Data Results
Given that the UK has produced a mixed-bag of economic data results over the past week, the <a href="/British-Pound-GBP-currency-table.html">Pound</a> has the potential to fluctuate versus its peers over the coming week with several influential domestic data publications due for release. Positive data could stoke a significant Sterling appreciation which will not be welcomed by Bank of England (BoE) policymakers.
Of most significance over the coming week, in terms of ecostats, will be the Consumer Price Index. Given the recent wage growth acceleration combined with record-low interest rates; inflation has the potential to pickup in June.
In addition to the data mentioned above; Bank of England Credit Conditions & Bank Liabilities Surveys, Claimant Count Rate, Jobless Claims Change, Average Weekly Earnings, Weekly Earnings ex Bonus, ILO Unemployment Rate and Employment Change will be of interest to those trading with the British Pound.