Foreign exchange rate investors await Super Thursday in which the BoE interest rate decision, accompanying meeting minutes / inflation report will be published; Before this, the Pound to Dollar and the Euro exchange rates are predicted to see subdued trade.
Today's Pound Sterling to Euro Exchange Rate Forecast to Rise Above 1.40 GBPEUR
The British Pound peaked above the 1.40 level against the Euro on Friday, registering another significant daily gain versus the single currency, as the GBP-USD exchange rate recovered to a level close to 1.55 by the close of trading.
The US Dollar lost a lot of momentum towards the end of the week, as the focus moved away from an interest rate increase in December to the concerns surrounding the economic outlook.
Latest Pound / Euro / US Dollar Exchange Rates Today
On Friday the Euro to British Pound exchange rate (EUR/GBP) converts at 0.858
The pound conversion rate (against euro) is quoted at 1.165 EUR/GBP.
Today finds the pound to canadian dollar spot exchange rate priced at 1.716.
The pound conversion rate (against australian dollar) is quoted at 1.897 AUD/GBP.
FX markets see the pound vs us dollar exchange rate converting at 1.254.
NB: the forex rates mentioned above, revised as of 3rd May 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.
A report from the Department of Commerce showed that U.S economic growth slowed sharply in the third quarter of the year with gross domestic product at an annualised pace of 1.5% between July and September, down from 3.9% in the second quarter.
The question now is whether the Fed will press ahead with a rate hike, considering the slowdown in growth and persistently low inflation.
US Non-Farm Payrolls to Inform Fed Rate Hike Bets, USD/GBP Exchange Rate Predicted to Cool
As a result, there will be significant attention on the October non-farm payrolls data in the U.S this week.
Payrolls have been softer in recent months, recording an average monthly gains of 167,000 in the third quarter.
The report this week is expected to confirm the number of jobs added to the economy again below 200,000, while the jobless rate looks set to hold at a 7.5 year low of 5.1%.
Meanwhile, average earnings are predicted to record a healthy increase, after growth stalled in September.
Sticking with the U.S, we also get a number of important surveys on manufacturing and services sector growth, which will give an early read on the strength of the U.S economy at the start of the fourth quarter.
The services ISM is forecast to remain at a solid enough level, but manufacturing is expected to slip slightly below the expansion level for the first time in 4-years, indicating a contraction in the sector.
This will in part reflect the strength of the U.S Dollar and the effect that is having on the competitiveness of U.S made goods
Pound to Euro (GBP/EUR) Exchange Rate Forecast to Decline on BoE Inflation Expectations, Policymakers to Hold Rates
This will in part reflect the strength of the U.S Dollar and the effect that is having on the competitiveness of U.S made goods.
In the UK this week, the focus will be on Thursday with a lot of information expected from the Bank of England. There is a policy meeting with no change expected to interest rates, which will remain on hold at 0.5%.
The accompanying minutes and the quarterly inflation report will take on added significance.
The expectations is that the BoE minutes will show an 8-1 vote to keep policy unchanged with the one dissenter McCafferty recommending an immediate rate increase.
We could get a downward revision to inflation expectations and overall, the BoE are likely to emphasise the view that interest rates are likely to remain lower for longer and that could adversely affect the Pound.
GBP/EUR/USD Data Released 2nd November
EU 09:00 Final Markit Manufacturing PMI (October)
U.K 09:30 CIPS/Markit Manufacturing PMI (October)
U.S 14:45 Final Markit Manufacturing PMI (October)
U.S 15:00 Construction Spending (September)
U.S 15:00 Manufacturing ISM (October)