The weakening of the yuan has a strengthening effect on the US dollar, which reduces the competitiveness of US products, and the increase in interest rates also has a strengthening effect on the dollar.
Advertisement
If you’re looking to make an international money transfer, we recommend TorFX. Sales increased 1.7% in July, beating the consensus estimate of 1.1% growth from a survey of economists conducted by The Wall Street Journal. Despite the weaker-than-anticipated retail sales growth, the figures show growth continues thanks to improving labour market conditions. The Euro to Pound Sterling exchange rate was trending within the range of 0.7273 to 0.7316 during Thursday’s European session.
LONDON, Sept 17 (Reuters) – The euro crept back above $1.13 on Thursday ahead of the most keenly watched policy decision in years by the Federal Reserve which is, on balance, expected to hold off from a rise in U.S. interest rates.
Yesterday, the Bank of Israel set the shekel dollar representative rate up 0.595% from last Friday’s rate, before the Jewish New Year holiday, at NIS 3.889/$, and the representative shekel-euro rate was set down 0.142%, at NIS 4.363/€. In particular, traders are showing reluctance to invest heavily in emerging-market assets given that opinion is divided as to whether policymakers will opt to hike or hold. Coupled with the strong likelihood of a Fed rate hike within the near-term foreseeable future, this EUR/USD trend is likely to be pressured further to the downside on a longer-term basis. However, Deposit Growth, Foreign Reserves and Bank Loan Growth may not have a huge impact depending on crude prices and the FOMC rate decision.
Turkish Lira to Pound Sterling Conversion Rate Predicted to Dive as Violence Undermines Turkish ElectionThe Turkish Lira to Pound Sterling exchange rate declined by around -0.7% on Thursday afternoon. The Pound is likely to advance if the Fed either hikes or if the accompanying statement is hawkish in tone.
“We will also see quarterly projections of growth, unemployment, inflation and the funds rate”. With violence in Turkey threatening an all out civil war, the general election is only fuelling the fire.
With the Fed firmly in focus, market participants took in their stride Standard and Poor’s downgrade of Japan’s credit rating by one notch to A+ late on Wednesday. Most scenarios point towards a Sterling appreciation, however, unless Fed Chair Janet Yellen is particularly dovish in her accompanying statement.
Advertisement
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate advanced to a high of 103.1900 during Thursday’s European session.
