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Pound lacking forward momentum

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Pound Sterling (GBP) Exchange Rates Firm after Decline in Unemployment

Pound (GBP) exchange rates traded in a narrow range yesterday as market focus shifted from Brexit onto the more pressing economic turmoil in Turkey.

The lack of recent Brexit developments and lull in domestic data saw the Pound lacking forward momentum, meaning Sterling instead derived its gains from developments abroad.

The Pound managed to edge higher this morning thanks to an unexpected decline in UK unemployment levels, with the rate of joblessness dropping to 4.0% and its lowest levels since 1975.

GBP/EUR Exchange Rate Fluctuates as Turkish Lira (TRY) Plummets

The Pound Euro (GBP/EUR) exchange rate fluctuated yesterday as the Euro continued to feel the effects of the financial crisis in Turkey.

The Turkish Lira (TRY) plunged a further 7% on Monday, causing EUR investors additional grief in light of the Eurozone’s economic ties to Turkey.

However, the common currency was later supported by better-than-forecast growth data for the Eurozone.

GBP/USD Exchange Rate Stable amid Safe-Haven Demand

The Pound US Dollar (GBP/USD) exchange rate, much like GBP/EUR, was dictated by the continued sell-off of the Lira yesterday, which saw investors take shelter in safe-haven currencies like USD.

The Lira appeared to plateau somewhat during yesterday’s session, which saw a decline in demand for the US Dollar and contributed to the relatively steady GBP/USD exchange rate.

In the absence of noteworthy US data today, the ‘Greenback’ may again find itself driven by safe-haven demand, with raging geopolitical uncertainty likely to bolster USD.

Turkey Crisis Subdues GBP/CAD Exchange Rate

The Pound Canadian Dollar (GBP/CAD) exchange rate held steady yesterday with a quiet day for the UK and Canada directing market focus towards developments in Turkey.

GBP/AUD Exchange Rate Rises amid Soured Risk-Appetite

Subdued market risk-appetite saw the Pound Australian Dollar (GBP/AUD) exchange rate soar on Monday, with the ‘Aussie’s’ fall reflecting an aversion to risk-related currencies in the wake of the Turkish Lira’s (TRY) plummet.

Looking ahead, a projected fall in Australia’s consumer confidence index overnight could dent AUD value, bolstering the GBP/AUD exchange rate in the next session.

GBP/NZD Exchange Rate Slides amid ‘Kiwi’ Allure

The Pound New Zealand Dollar (GBP/NZD) exchange rate fell on Monday as the ‘Kiwi’ fared much better than its fellow higher risk currencies.

 

Further Reading

 

Coronavirus panic drives US dollar strength

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

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

  

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.
 

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