Loading...

Pound Falters as Business Investment Dries Up

#News #AUD #CAD #EUR #GBP #NZD #USD
Email share     Facebook     LinkedIn    Twitter

Sterling


GBP/USD 1 Week Chart

The Pound (GBP) tumbled against the other majors yesterday as the UK’s latest growth report painted a gloomy picture for 2017.

While fourth Quarter GDP figures saw a slight uptick, rising from 0.6% to 0.7%, Sterling fell as economists predicted that growth would slow in 2017. Meanwhile, investors were also concerned about the drop in UK business investment as it fell from 0.4% to -1% over the same period.

The Pound may mount a recovery later this morning however if the CBI retail sales index rises in February as expected.

Euro

The Pound Euro (EUR) exchange rate fell by around a cent from its best levels on Wednesday as upbeat Eurozone data helped the single currency rally from its weekly low.

EUR rose as German Business Climate data beat expectations to climb from 109.9 to 111, allaying fears that political uncertainty was having an impact on business sentiment.

However, a worse than expected drop in German Consumer confidence this morning could see the Euro relinquish some of yesterday’s gains.

US Dollar

Sterling softened against the US Dollar (USD) yesterday as the minutes from the latest Federal Reserve interest rate decision showed that many members expect the next interest rate hike to come ‘fairly soon’.

While the reception to the minutes was lukewarm at best, as investors fear the uncertainty of Trump’s economic plans will prevent any sudden moves by the Fed, it was enough to allow the ‘Greenback’ to exploit the weakness in the Pound.

USD may be allowed to extend its gains later this afternoon as Continuing Jobless Claims are predicted to have fallen from 2076k to 2068k in February, although a slight uptick in new claims could hinder its advance.

Canadian Dollar

The GBP CAD exchange rate dropped by nearly a cent yesterday as predictions that UK growth would slump in 2017 caused the Pound to weaken.

However, Sterling mounted a recovery this morning as Canada’s disappointing retail sales on Wednesday and subdued oil prices prevented the Canadian Dollar from stabilising at its best levels.

Australian Dollar

The Pound Australian Dollar (AUD) exchange rate fluctuated wildly overnight as Australian Capital Expenditure fell short of expectations.

Meanwhile the recent rise in iron ore prices came to an abrupt halt yesterday as a warning over the demand for steel grounded trading.

New Zealand Dollar

Sterling plummeted nearly two cents from its best levels against the New Zealand Dollar (NZD) on Wednesday as the slump in UK business investment caused traders to shy away from the Pound.

 

Further Reading

 

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

New Year Optimism Retreats on US/Iran Tension

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

  

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.
 

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

 

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