Pound Sterling (GBP) Exchange Rate Recoups Losses following Mass Sell-Off
The Pound (GBP) managed to rally yesterday after a large-scale offload by investors in the beginning of the week saw its value plummet.
With no UK news to focus on yesterday economists speculate that the principle reason behind GBP’s recovery was that the initial sell-off was somewhat overzealous.
The US Dollar (USD), however, continued to climb against the Pound, but Sterling regained some of the ground lost against the Euro (EUR), among others.
The Pound has a chance today to extend its reversal of fortune, with GDP figures meeting their forecast increases, although analysts speculate that this increase may already have been priced in.
GBP/EUR Exchange Rate Rises following ECB Bulletin
The Pound Euro (GBP/EUR) exchange rate managed to gain 0.2% yesterday, which offered some marginal relief following Sterling’s dramatic decline on Wednesday.
This increase had more to do with the Euro dipping, however, as the European Central Bank (ECB) released their latest economic bulletin. The bank’s bearish outlook on the effects that issues like trade tariffs and Brexit may have on the world economy did little to incite investor confidence in the single currency.
The Eurozone is not due to publish any more major data this week, which will likely leave Euro exchange rate fluctuations dependent on news from abroad.
GBP/USD Exchange Rate Continues Downtrend as Trade Tensions Remain Prominent
The Pound US Dollar (GBP/USD) exchange rate hit a one-year low overnight as the pairing continues to be pummelled by trade fears.
Investors turned to USD as safe-haven demand was exacerbated by enduring trade war fears, as well as an announcement that the White House will enact further sanctions on Russia.
The US Dollar may continue its drastic appreciation this afternoon if the US’s latest CPI data shows an increase in inflation, as this would support the prospect of further interest rate hikes by the Federal Reserve.
GBP/CAD Exchange Rate Firms following Dip in Oil Prices
The Pound Canadian Dollar (GBP/CAD) exchange rate was stable yesterday as crude oil prices fell, causing the commodity-correlated ‘Loonie’ to lose popularity with investors.
CAD may strengthen this afternoon even without oil prices to back it up, as today’s Canadian jobs data is expected to show a decline in unemployment.
GBP/AUD Exchange Rate Bolstered by Trade Tensions
A decline in risk appetite saw the Pound Australian Dollar (GBP/AUD) exchange rate boosted on Thursday, with the continuing US-China trade spat leading to a decline in demand for the ‘Aussie’.
GBP/NZD Exchange Rate Swells amid RBNZ Dovishness
The Pound New Zealand Dollar (GBP/NZD) exchange rate rose by nearly a cent yesterday as fallout
from the Reserve Bank of New Zealand’s interest rate decision continued to spell a decline in the
‘Kiwi’. While the Pound has since shed some of these gains, GBP/NZD remains up on the week’s worst levels.
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