Exchange Rates Today: FOMC Rate Decision Supports BoE Bets

Published: 20 Oct 2017 21:24 Currency Markets

pound to euro exchange rate today

Our latest pound to euro exchange rate forecast sees further upside moving into 2016.

With the Federal Reserve interest rate decision at the forefront of investor focus, the currency market saw subdued trade during Wednesday’s European session.

That all changed, however, as foreign exchange markets reacted to the hawkish FOMC release, sending the US Dollar exchange rate bullish versus the British Pound, Euro and other majors.

Latest Pound / Euro Exchange Rates Today

On Thursday the Euro to British Pound exchange rate (EUR/GBP) converts at 0.856

The pound conversion rate (against euro) is quoted at 1.168 EUR/GBP.

The pound conversion rate (against japanese yen) is quoted at 190.811 JPY/GBP.

The pound conversion rate (against indian rupee) is quoted at 105.144 INR/GBP.

FX markets see the pound vs us dollar exchange rate converting at 1.261.

Please note: the FX rates above, updated 28th Mar 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.

Assets such as the Canadian Dollar and Russian Ruble surged significantly after US oil inventories showed stockpiles reduced; resulting in a significant oil price increase.

Pound Sterling to Japanese Yen Conversion Rate Predicted to Trend Narrowly after Japanese Retail Sales Contract

Despite a complete absence of domestic data today, the British Pound softened versus most of its currency rivals.

Notable losses can be seen against the Euro, Canadian Dollar, Russian Ruble, Swedish Krona and South African Rand.

The Pound Sterling to Japanese Yen exchange rate is currently trending in the region of 184.5900.

ADVERTISEMENT
foreign exchange rates
Japanese economic data produced mostly disappointing results over the past few days which has seen the Yen decline versus many of its currency competitors.

September’s Retail Sales unexpectedly contracted by -0.2% on the year; well below the median market forecast 0.4% sales growth.

In addition, October’s Small Business Confidence report revealed small retailers lack of optimism with the gauge falling from 49 to 48.7.

Volatility in Asian stocks following disappointing Chinese economic data also weighed on demand for the Japanese Yen.

The Pound Sterling to Japanese Yen exchange rate was trending within the range of 183.8700 to 184.6900 during Wednesday’s European session.

Pound Sterling to Indian Rupee Conversion Rate Forecast to Trend Narrowly on Surging Crude Prices

The Pound Sterling to Indian Rupee was trending within a narrow range on Wednesday afternoon.

The main reason for the Pound’s fractional depreciation can be linked to traders digesting the less-than-ideal growth data printed yesterday.

Third-quarter British Gross Domestic Product saw slower-than-anticipated growth on both an annual and quarterly basis. This led many investors to believe that the Bank of England (BoE) will look to delay a benchmark rate hike further into 2016.

The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 99.6880.

After US Crude Inventories data showed that stockpiles were reduced beyond expectations, the price of crude oil rallied significantly. This caused the Indian Rupee to soften versus many of its currency rivals given that India is one of the world’s foremost crude importers.

Also weighing on demand for the Rupee was volatility in Asian stock markets following weak consumer sentiment in China.

The Pound Sterling to Indian Rupee exchange rate was trending within the range of 99.1570 to 99.6880 during Wednesday’s European session.

Pound Sterling to South African Rand Exchange Rate Dives after SA Government Forces Municipalities to Pay Eskom

The Pound Sterling to South African Rand exchange rate plunged by around -0.7% on Wednesday afternoon.

The British Pound is likely to see greater volatility on Thursday both in response to domestic data publications and once the much-anticipated FOMC rate decision has been made.

There is, however, the possibility that British economic data will be overshadowed depending on the outcome of the Fed rate decision and accompanying press conference.

Should the Fed adopt a bullish tone, for example, the Pound is likely to rally given that many traders believe that the Bank of England (BoE) will look to follow closely with the Federal Reserve’s policy tightening cycle.

The Pound Sterling South African Rand exchange rate is currently trending in the region of 20.7760.

With some experts predicting that a Fed rate hike will have a detrimental impact on South Africa’s economy, the likelihood that the FOMC will hold rates today has seen the Rand advance versus its major peers.

Also aiding the Rand uptrend was news from the South African government that they intend to force payments from 27 local municipalities who are failing to pay their electricity bills to state-owned utility Eskom Holdings.

Eskom’s struggles this year has cost the economy a huge amount with rolling blackouts during peak hours; one of the reasons a Fed rate hike would be bad news for South Africa.

The Pound Sterling to South African Rand exchange rate was trending within the range of 20.6430 to 20.9620 during Wednesday’s European session.

Pound Sterling Update

Given that the Bank of England (BoE) is unlikely to hike the benchmark interest rate ahead of the Federal reserve, the hawkish tone of the Fed policy statement caused the Pound to advance versus many of its peers.

On Thursday, however, Sterling gains have been somewhat haled thanks to mixed domestic data results and trader profit-taking.

Advertisement

Save money on your currency transfers with TorFX, voted International Money Transfer Provider of the Year 2016 - 2022. Their goal is to connect clients with ultra competitive exchange rates and a uniquely dedicated service whether they choose to trade online or over the telephone. Find out more here.

Related News

Top Global FX Exchange Rate Forecasts - Latest Data Projections From Financial Institutions and Market Analysts

Euro to Dollar forecastPound to Euro forecastPound to Dollar forecastEuro to Pound forecastUS Dollar to Canadian Dollar forecastUS Dollar to Yen forecastAustralian Dollar to US Dollar forecast