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Canadian Dollar Recoils as BoC Strikes Cautious Tone

#News #AUD #CAD #Energy #EUR #GBP #NZD #USD
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Sterling

The Pound (GBP) remains under pressure this morning as markets look to Theresa May to break the current impasse in Brexit negotiations.

This pressure was intensified even further yesterday evening as the EU’s chief Brexit negotiator, Michel Barnier said that the UK must finalise an exit agreement by the end of the week or face delays to trade discussions.

However helping to stem Sterling’s losses this morning was the release of the UK’s latest house price index, which revealed that price growth rose faster than expected in November.

Euro

The Pound Euro (GBP EUR) exchange rate is trading in a narrow range this morning as the pairing remains subdued in the face of growing Brexit uncertainty.

Helping to offset Sterling’s Brexit losses this morning as German industrial production failed to rebound as forecast in October, with output unexpectedly contracting for a second consecutive month.

However the Euro may be able to strengthen again later this morning with the release of the latest Eurozone GDP estimate which is expected to confirm that economic growth remained robust in the third quarter.

US Dollar

Sterling tumbled over half a cent against the US Dollar (USD) on Wednesday, striking a new weekly low as Brexit fears weighed heavily on the pairing.

Aiding the ‘Greenback’s advance yesterday was the release of the latest US employment data, with ADP’s payroll figures showing that 190,000 Americans entered work last month.

However the US Dollar may be forced to shed some of these gains going forward as investors become increasingly sceptical over the chances of Trump’s tax cuts being implemented before the end of the year.

Canadian Dollar

After initially sliding yesterday morning the Pound Canadian Dollar (GBP CAD) exchange rate was able to rally by around two cents in the afternoon as the Bank of Canada voted to leave interest rates on hold.

While the move had been widely expected by analysts the ‘Loonie’ was weakened at the bank struck a more dovish tone than expected in regards to future rate hikes.

Australian Dollar

Sterling surged higher against the Australian Dollar (AUD) again in overnight trade on Wednesday as the ‘Aussie’ was pressured by Australia’s latest trade balance, which revealed that the nation’s trade surplus shrank to AU$0.1bn in October, well below expectations of a AU$1.3bn surplus.

New Zealand Dollar

The Pound New Zealand Dollar (GBP NZD) exchange rate continued to rally last night as the ‘Kiwi’ followed its Australian counterpart lower, thanks in part to the strength of the US Dollar.

 

Further Reading

 

Coronavirus panic drives US dollar strength

Currency rates were extremely volatile last week as the coronavirus situation worsened day by day with various countries implementing ever-tougher measures to stop the spread of the disease.

Last update: 23 Mar, 2020

Coronavirus spread fears linger – USD strong – AUD at 11 year lows

This week the US Dollar was touching three-year highs when valued against a basket of major currencies. The greenback’s traditional role as one of the safe-haven currencies is helped by a domestic economy that is largely immune to the threats of the coronavirus.

Last update: 22 Feb, 2020

Coronavirus unnerves currency markets

The strong start to the year for “risk-on” currencies is already a distant memory.

Posted: 3 Feb, 2020

  

Posted to: News

 
 
Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.
 

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