Sterling remains under pressure against the euro this morning, following a report from the IMF slashing Britain’s growth forecast.
07.06.2011
GBPEUR
Sterling remains under strong pressure against the euro this morning. This owes in large part to pessimistic headlines from Britain: of late the IMF has released a report cutting its growth forecasts for the UK -0.2% to 1.5%.
The IMF stated that Chancellor Osborne remains on track to meet his deficit cuts, but noted that growth has languished, and recommended Osborne cut taxes to stimulate growth. This follows a string of poor data from Britain, including a slowdown in Services last week, hence putting pressure on sterling.
In Europe meanwhile, economists are forecasting that ECB President Trichet could hint at an interest rate rise in his speech later this week. The European Central Bank is not expected to raise rates this month, but hints that it might later have boosted the euro.
In spite of this however, there have been poor headlines from Greece overnight. EU officials continue to debate the second bailout, including the amount and circumstances of the rescue. This could remain an albatross around Europe’s neck for some time.
GBPUSD
Sterling remains strong against the US dollar meanwhile, in large part because of Stateside pessimism. Last week the Department of Labor released some catastrophic job creation data, prompting reduced confidence in the US economic outlook as a whole.
Indeed, some economists are predicting that the Federal Reserve might have to begin a third round of quantitative easing, to prevent the US sinking back into the mire. These rumours have put the US dollar under considerable pressure, benefiting rival currencies including sterling.
In spite of sterling strength against the US dollar though, there’s been more uninspiring data from Britain overnight. House prices decline -4.2% last month according to Halifax, following a -3.7% decline the month before.
In addition, retail sales failed to meet forecasts, declining -2.1% last month compared to expectations of 2.0% growth. So sterling might concede ground to the US dollar in spite of Stateside pessimism.
Coming Up
11.00 BST German factory orders
15.00 BST US TIPP economic optimism
20.00 BST US consumer credit change
00.00 BST UK BRC shop price index
Got a question?
Got a question about the exchange rates? Then feel free to leave a response and we’ll get back to you as soon as possible. In addition feel free to email us at enquiries@purefx.co.uk or call 01494 671800.
Furthermore, if you’d like to receive more useful tips about the exchange rates in future, please visit our Facebook and Twitter pages too.
7 June 2011
Sterling still under pressure against the euro
Sterling remains under pressure against the euro this morning, following a report from the IMF slashing Britain’s growth forecast.
07.06.2011
GBPEUR
Sterling remains under strong pressure against the euro this morning. This owes in large part to pessimistic headlines from Britain: of late the IMF has released a report cutting its growth forecasts for the UK -0.2% to 1.5%.
The IMF stated that Chancellor Osborne remains on track to meet his deficit cuts, but noted that growth has languished, and recommended Osborne cut taxes to stimulate growth. This follows a string of poor data from Britain, including a slowdown in Services last week, hence putting pressure on sterling.
In Europe meanwhile, economists are forecasting that ECB President Trichet could hint at an interest rate rise in his speech later this week. The European Central Bank is not expected to raise rates this month, but hints that it might later have boosted the euro.
In spite of this however, there have been poor headlines from Greece overnight. EU officials continue to debate the second bailout, including the amount and circumstances of the rescue. This could remain an albatross around Europe’s neck for some time.
GBPUSD
Sterling remains strong against the US dollar meanwhile, in large part because of Stateside pessimism. Last week the Department of Labor released some catastrophic job creation data, prompting reduced confidence in the US economic outlook as a whole.
Indeed, some economists are predicting that the Federal Reserve might have to begin a third round of quantitative easing, to prevent the US sinking back into the mire. These rumours have put the US dollar under considerable pressure, benefiting rival currencies including sterling.
In spite of sterling strength against the US dollar though, there’s been more uninspiring data from Britain overnight. House prices decline -4.2% last month according to Halifax, following a -3.7% decline the month before.
In addition, retail sales failed to meet forecasts, declining -2.1% last month compared to expectations of 2.0% growth. So sterling might concede ground to the US dollar in spite of Stateside pessimism.
Coming Up
11.00 BST German factory orders
15.00 BST US TIPP economic optimism
20.00 BST US consumer credit change
00.00 BST UK BRC shop price index
Got a question?
Got a question about the exchange rates? Then feel free to leave a response and we’ll get back to you as soon as possible. In addition feel free to email us at enquiries@purefx.co.uk or call 01494 671800.
Furthermore, if you’d like to receive more useful tips about the exchange rates in future, please visit our Facebook and Twitter pages too.