Exchange Rates Today - Pound to Euro Currency Pair Down 4 Cents – Falls from Best Rate
Both the Pound Sterling to US Dollar and Pound Sterling to Euro exchange rates are likely to experience notable movement in the hours ahead as the UK publishes GDP data for the second quarter of the year. The first quarter number of 0.4% was fairly disappointing, but economists are expecting a more impressive rate of expansion in the second quarter. If the nation is shown to have grown by 0.7% in the three months through June, as economists project, the Pound may climb.
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The Pound to Euro exchange rate tumbled by over 4 cents against the Euro in late Friday trade, dropping from a 7 year high as soft UK retail sales figures fell well below analysts’ expectations.
The Office for National Statistics said the volume of retail sales in June fell 0.2% compared with May, confounding City expectations of a 0.4% post-election boost to spending. Falls in sales were reported by petrol stations, food stores and outlets selling household goods, the ONS said.
A quick foreign exchange market summary before we bring you the rest of the report:
On Saturday the Euro to British Pound exchange rate (EUR/GBP) converts at 0.858
The GBP to EUR exchange rate converts at 1.165 today.
Today finds the pound to canadian dollar spot exchange rate priced at 1.715.
The live inter-bank GBP-AUD spot rate is quoted as 1.9 today.
At time of writing the pound to us dollar exchange rate is quoted at 1.255.
Please note: the FX rates above, updated 4th May 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 Retail Sales Weigh on British Pound (GBP) Exchange Rate Trading, GBP/USD Steady, GBP/EUR Lower
Elizabeth Martins, economist at HSBC, said the retail data “may take some wind out of the sails of an increasingly hawkish market, but not – we suspect – for long.” Paul Hollingsworth, UK economist at Capital Economics, said the weaker monthly figure “does not alter the big picture that the consumer recovery remains in full swing”.
Friday’s release weighed quite heavily on the Pound Vs Euro exchange rate which dropped from a high on Friday at 1.4174 to drop just shy of support above 1.41. Sell positions however have been building against the Pound with the GBP/EUR opening up down considerable in early morning trade dropping to 1.3968, one of the lowest levels for almost a month.
British Pound to Euro Exchange Rate Forecast to Gain if UK GDP Rises
The Pound Vs Euro exchange rate should see support as we head into Tuesday, with the up and coming GDP figure due for release. Economists believe the Office for National statistics estimate for Tuesdays GDP figure will show a marked increase over 0.4% for the Months of April through to June.
The projected figure comes as a number of blue chip companies on the UK stock market continue to perform well, with just 57 companies declaring a decline in the second quarter which is the lowest level since the third quarter of 2013.
Capital Economics senior UK economist Samuel Tombs said: “Encouragingly, the gamut of the survey data suggests that GDP growth is likely to have improved significantly from the 0.4 per cent rate recorded in the first quarter.”
Currency Market Outlook Now: UK Retail Sales Could Weigh on Growth, GBP May Fall against EUR, AUD, USD, NZD
Markit chief economist Chris Williamson said that while growth is likely to have picked up in the second quarter, however the fact that the ONS found that retail sales fell in June by 0.2 per cent is a concern.
A positive figure is likely to support a positive reaction with the GBP/EUR exchange rate and we should see a good upside move from the recent lows back up towards 1.43+. A figure below 0.7% however is likely to weigh significantly against Sterling and we could see a drop in demand for the British Pound.