Pound Sterling (GBP) Exchange Rates Quiet after UK House Price Revelation
Following a decline in Pound (GBP) exchange rates on Monday, which pushed GBP/EUR close to a nine-month low, Sterling found some respite yesterday after the publication of the UK’s House Price Index for July.
The reported 3.3% increase in house prices beat the projected estimate of 2.7%, but this was not enough to significantly bolster GBP, with experts stating that the overall activity in UK housing remains insubstantial.
The Pound may struggle to gain forward momentum today with a lull in UK data throughout the session, forcing focus back onto Brexit developments. Sterling is unlikely to recover if sentiment remains pessimistic.
GBP/EUR Exchange Rate Fails to Benefit from Disappointing German Data
The Pound Euro (GBP/EUR) exchange rate maintained its multi-month low yesterday after investors turned to the Euro following a decrease in demand for the US Dollar (USD).
The Euro’s gains came despite below-projected German industrial figures, which stated that the pace of factory output slowed by 0.9% in June.
A lack of new Eurozone data today, however, may see EUR struggle to make further gains during the session.
GBP/USD Exchange Rate Level following US Job Openings Figures
The Pound US Dollar (GBP/USD) exchange rate flailed during Tuesday’s session as the pound remained unappealing and the US Dollar benefited from some upbeat US job openings figures.
However, a sudden decline in safe haven demand for the US Dollar meant the ‘Greenback’ ran out of steam and struggled to maintain its upward trajectory.
Today’s session boasts little in the way of new US data, but USD could edge higher if the market is directed by ongoing trade anxiety.
GBP/CAD Exchange Rate Falters following Rising Oil Prices
Yesterday saw the Pound Canadian Dollar (GBP/CAD) exchange rate trend ever-so-slightly downwards as the ‘Loonie’ reacted to an increase in crude prices.
The asking price for crude oil may increase further this afternoon if the US reveals their crude inventories have diminished again in the last week, which would likely bolster CAD exchange rates further.
GBP/AUD Exchange Rate Dips as Risk Appetite Grows
The Pound Australian Dollar (GBP/AUD) exchange rate wilted again yesterday, striking a two-week low, as the decline in demand for the US Dollar (USD) strengthened the ‘Aussie’.
GBP/NZD Exchange Rate Down Ahead of RBNZ Decision
The Pound New Zealand Dollar (GBP/NZD) exchange rate was largely flat yesterday as the ‘Kiwi’ struggled to gain traction following the latest global dairy auction, despite general market risk appetite. However, the GBP/NZD exchange rate has fallen by 0.4% today, with the Pound returning to its recent downtrend.
This evening, the Reserve Bank of New Zealand (RBNZ) will announce its latest interest rate decision, which is widely predicted to keep the rate unchanged but could cause an upset to NZD exchange rates should the bank hint at a future rate cut.
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
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
The strong start to the year for “risk-on” currencies is already a distant memory.
Posted: 3 Feb, 2020