Pound Sterling (GBP) Exchange Rate Steady in Anticipation of Rate Hike
The Pound (GBP) is remaining steady today as investors wait to see whether the Bank of England (BoE) will raise interest rates by a projected 25 basis points.
Investors are reluctant to trade GBP in light of uncertainty surrounding the outcome of the BoE’s decision.
Should the interest rate in fact remain the same the Pound may see a drop in value, but it might also depreciate if the probable rate increase is indicated to be a temporary measure.
GBP/EUR Exchange Rate Bolstered by Feeble Eurozone Factory Activity Growth
The Pound Euro (GBP/EUR) exchange rate saw an uptick yesterday as data firm Markit indicated the Eurozone’s manufacturing PMI saw no substantive growth in July.
The slight increase in factory activity from 54.9 points to 55.1 was one of the slowest growth rates in more than a year, and was not enough to see the EUR exchange rate gain much traction.
Today’s session is lacking in noteworthy data releases, so a positive BoE decision early this afternoon may see the common currency trade lower against GBP.
GBP/USD Exchange Rate Falls Due to Fed Hawkishness
The Pound US Dollar (GBP/USD) exchange rate took a blow overnight after the Federal Reserve’s latest policy meeting, despite not seeing much activity throughout Wednesday’s session.
Despite the fact that the Fed made no changes to US interest rates, investor confidence grew in light of the tone of policymakers, who indicated that rates would continue to rise as the economy grows.
The US Dollar may make gains today following the publication of the US factory orders data for June, with an increase forecast.
GBP/CAD Exchange Rate Flat as Oil Prices Take a Dip
The Pound Canadian Dollar (GBP/CAD) exchange rate remained flat on Wednesday due to an abrupt drop in crude prices, putting the ‘Loonie’ on the back foot.
GBP further lacked support due to a lack of UK data.
GBP/AUD Exchange Rate Jumps as US-China Trade Tensions Grow
Despite Australia’s latest trade data performing above expectations, the Pound Australian Dollar (GBP/AUD) exchange rate advanced on Wednesday after investor confidence soured in light of the escalating strain on trade between the US and China.
A steep decrease in iron ore prices also contributed to ‘Aussie’ (AUD) losses.
The Australian Dollar may see further losses overnight on Thursday, with incoming domestic sales data forecast by analysts to display a dip in growth.
GBP/NZD Exchange Rate Strengthens as Risk Appetite Curdles
The Pound New Zealand Dollar (GBP/NZD) exchange rate received a boost on Wednesday, as investors were put off investing in the risk-correlated ‘Kiwi’.
This came after news that the US may increase its tariffs on Chinese goods.
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