The Pound (GBP) softened against many of its peers yesterday as analysts forecast that the UK’s first quarter growth is likely to slow after the mixed bag of economic data published since the start of the year.
Economists also predict that this downtrend could continue into the second quarter as rising inflation and anaemic wage growth pressures consumer spending.
Sterling is also likely to be hit by the UK’s latest Trade Balance figures later this morning, as the nation’s deficit was shown to have grown.
After some early morning volatility following a dovish speech from European Central Bank (ECB) President Mario Draghi, the Pound Euro (GBP EUR) exchange rate began to slip from its afternoon highs as markets soured on Sterling.
The single currency was also strengthened this morning as Germany’s industrial production proved to be unexpectedly resilient in February, holding steady at 2.2% after analysts forecast that output would actually contract 0.1%.
Sterling fell by almost half a cent from its best levels against the US Dollar (USD) on Thursday following a better than expected drop in the number of Jobless Claims at the start of the month.
The number of jobless American’s applying for benefits dropped from 259,000 to 234,000 at the start of April, beating initial estimates that they would only drop to 250,000.
However the ‘Greenback’ may weaken later this afternoon as economists forecast that US Non-Farm Payrolls will fall from 235,000 to 180,000 in March as US job creation slowed last month.
The Pound Canadian Dollar (CAD) exchange rate plummeted around a cent over the last 24 hours as the ‘Loonie’ was strengthened by surging oil prices, following the US military action in Syria.
However the Canadian Dollar may cede some of its gains later this afternoon as Canada’s Unemployment Rate is expected to rise from 6.6% to 6.7% in March.
Sterling was able to claw higher against the Australian Dollar (AUD) during overnight trading on Thursday as the ‘Aussie’ was battered by a 5.4% drop in iron ore prices, with Chinese futures suggesting that there will be further weakness ahead for Australia’s large export.
New Zealand Dollar
The Pound New Zealand Dollar (GBP NZD) exchange rate tumbled almost half a cent in trading yesterday as markets began to shy away from the Pound on fears that UK economic growth is likely to suffer during the first half of 2017.
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
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The threat of a proxy war between the US and Iran in Iraq has pared back some of the recent gains of “risk-on” currencies.
Last update: 8 Jan, 2020