Today's Pound Sterling to Euro Exchange Remains Close to Best Monthly Conversion after FOMC Statement Bolsters USD Complex
Today's euro exchange rate complex saw hints of strengthening after the EUR/GBP and EUR/USD declined sharply in foreign currency markets after the release of the latest FOMC statement.
The FED left interest rates alone but gave strong hints of a December rate hike, sending the US Dollar exchange rates higher .
While the GBP/USD exchange rate tumbled from 1.5350 toward 1.5250, EUR/USD sank over 150 pips, to trade around the 1.09 mark.
The British Pound to euro exchange rate also benefited from the weaker single currency, rising close to best conversion levels of 1.4.
According to Ilya Spivak, Currency Strategist at Daily FX: "Near-term support is now at 0.7126, the 38.2% Fibonacci expansion. A break below that on a daily closing basis opens the door for a challenge of the 50% level at 0.7088. Alternatively, a reversal back above the 23.6% Fib at 0.7173 – now acting as resistance – clears the way for a test of the 14.6% expansion at 0.7203."
Latest Pound / Euro Exchange Rates Today
On Friday the Pound to British Pound exchange rate (GBP/GBP) converts at 1
The GBP to GBP exchange rate converts at 1 today.
The live inter-bank GBP-USD spot rate is quoted as 1.238 today.
NB: the forex rates mentioned above, revised as of 19th 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.
UK GDP grew by 0.5% between July and September as confirmed by the Office for National statistics, down 0.7% in the second quarter. The rate was also below analysts’ expectations at 0.6%, with both construction and Manufacturing down considerably.
"The slowdown is being led by the manufacturing sector, which is seeing a renewed recession as output has now fallen for three consecutive quarters, suffering a 0.3% decline in the three months to September," said Chris Williamson, chief economist at research firm Markit.
Net short positions selling against Sterling increased as Interest expectations were once again scaled back, the GBP/EUR however still remains reasonably well supported with a -0.26% drop from the opening at 1.3908 to reach a daily low at 1.3831.
The GBP/EUR has gained over 4% since the beginning of October and a break of the last major high at 1.3946 will open up the way for a test of resistance at 1.40.
Pound to Dollar Exchange Rate Cooled to a Low of 1.5289.
The Pound Vs US Dollar also lost momentum following the release, as the US Dollar continued to track underlying risk trends with traders betting short heading into the release which suggests a negative figure was expected before it hit the wire.
The GBP/USD dropped -0.40% from an opening price at 1.5359 to track as low as 1.5289 by late European trading.
The GBP/USD exchange rate still remains in a technical downtrend following the last major low at 1.51 back in August, so if this week’s US GDP falls below expectations on Thursday then we could see another bearish run for the GBP/USD pair.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast: German Consumer Confidence and Federal Reserve Interest Rate Decision to Drive Sterling Movement Tomorrow
With no key data due out of the UK on Wednesday, focus will switch to the up and coming Gfk Consumer confidence figure from the Eurozone in early morning trade, followed by the highly anticipated Federal open market Committee rate decision which headlines the economic calendar.
Pound Sterling Softens Versus the Euro as Single Currency Recovers
In the early stages of Wednesday's European session, the Pound Sterling to Euro exchange rate softened by around -0.2%.
With the Federal Reserve interest rate decision the central focus for traders, market volatility is likely to remain subdued during the London session.
European CPI will be the focus of Friday morning’s trading.
EUR has been weighed by the ECB and hawkish FOMC statement, so a strong print could see EUR/GBP rise today.