Loading...
Best Exchange Rates

Home pages - full list (A-Z)

  •  

GBP, AUD, NZD Jump as UK-EU Reach Deal on Financial Services

Currency-News AUD CAD EUR GBP JPY NZD USD
Email share     Facebook     LinkedIn    Twitter
  GBP Pound Sterling Brexit Deal on Financial Services

The mood was buoyant in foreign exchange markets on Thursday following news that the UK has achieved a deal with the EU on financial services that would give London’s banks continued access to European markets post-Brexit.

Together with the pound, currencies that benefit from the switch to “risk on,” like the Australian dollar and New Zealand dollar, did best, especially against the safe haven currencies of choice—the US dollar and Japanese yen.

GBP to USD - 1 Week chart - Latest
GBP/USD - 1 Week Chart - Latest

For investors, Brexit has long represented a cloud of uncertainty over markets in Europe and beyond, and today’s agreement is a sign, most now believe, that a broader Brexit deal will soon be finalized. The UK’s Brexit Secretary Dominic Raab said as much in a letter to members of the Commons Brexit committee, to whom he wrote that the government expects to strike a full deal within three weeks.

Sterling, now back buying $1.29, perhaps won’t make the most of today’s developments until after Thursday’s Inflation Report, delivered by the Bank of England at midday in London. In addition to its quarterly report, the BoE will almost certainly announce no change to its benchmark interest rate, currently at 0.75 percent.

With risk appetite increasing, the Australian dollar leapt away from recent price action to trade at $0.716 for the first time in a month. Likewise, the New Zealand dollar rallied strongly to $0.6615.

AUD to USD - 1 Week chart - Latest
AUD/USD - 1 Week Chart - Latest

The Canadian dollar might ordinarily have had a much stronger performance, but it remains bogged down by a rapidly declining oil price. Each barrel of “black gold” is now worth $12 less—16 percent less—than it was four weeks ago. The loonie moved away from seven-week lows, strengthening moderately to $0.763.

With Thursday’s climb to $1.139, the euro did approximately half as well as the pound, relatively speaking. Of the two Brexit-associated currencies, it has been the pound, not the euro, that has been hardest hit whenever the possibility of “no deal” has been raised, and this explains the day’s half-penny loss in euro buying power relative to sterling. When last seen, EUR/GBP was quoted at a nine-day low of £0.881 (GBP/EUR €1.135).

 

Further Reading

 

US Dollar Plunges After Fed Signals No Rate Hikes This Year

The US dollar crumbled on Wednesday after the Federal Reserve signaled it would keep interest rates unchanged throughout 2019, thereby backtracking on the two rate hikes it predicted in December.

Updated: 20 Mar, 2019

TransferWise Borderless Account – BER Review

TransferWise’s Borderless Account allows users to hold and convert funds in 40 different currencies, and send and spend internationally, all at the “real” exchange rate and with the low fees that TransferWise is renowned for. Users can also receive major-currency payments free of charge.

Updated: 20 Mar, 2019

CBOE Ditches Bitcoin Futures Amid Reduced Interest

Amid declining interest, the Chicago Board Options Exchange, or CBOE, has announced it will no longer offer bitcoin futures contracts once current contracts expire in June.

Updated: 19 Mar, 2019

Canadian Dollar to Lose a Further 5 Percent, Will Soon Buy Only US$0.71 (TD Securities)

Prospects for the Canadian dollar have turned “considerably to the downside” and the currency is likely to lose 5 percent of its value this year, TD Securities has said.

Updated: 19 Mar, 2019

Australian Dollar Still Struggling; AUD/GBP at Lowest Since 2016

A slight advance in AUD/USD this week to $0.705 is hardly cause for celebration; however, the stability this represents following 3 weeks of losses would normally signify reduced currency pessimism—in this case, it doesn’t even do that.

Updated: 19 Mar, 2019

  

Tags: Currency-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. Full Disclaimer
   

Get a Better FX Deal when you Send and Spend Abroad.

 

Do NOT follow this link or you will be banned from the site!