Pound Sterling (GBP) Exchange Rates Steady ahead of BoE Rate Decision
The Pound (GBP) trended narrowly on Tuesday in anticipation of the Bank of England’s (BoE) interest rate decision on Thursday, which may see a 25 basis point increase.
There is still some uncertainty, however, making investors hesitant to go long GBP before the decision has been made.
Pound Euro (GBP/EUR) Exchange Rate Limited by Plentiful Eurozone Data
Despite the UK’s lull in data on Tuesday, the Pound Euro (GBP/EUR) exchange rate struggled to make any gains with the release of several high-importance Eurozone ecostats.
The key figure was the Eurozone’s GDP for the second quarter, which showed a deceleration in growth, although this was not enough to hinder EUR thanks to some positive inflation and employment data.
The bloc’s manufacturing PMI, released today, indicated that growth remained subdued in July, keeping downside pressure of Euro rates.
Pound US Dollar (GBP/USD) Exchange Rate Stable as US Inflation Figures Disappoint
The Pound US Dollar (GBP/USD) exchange rate was trending narrowly on Tuesday’s session thanks to the release of the US’s PCE Price Index for June.
USD investors were left unimpressed by the slight decrease in the index, given that the Federal Reserve relies on this figure as an indication of inflation.
The ‘Greenback’ may see some favourable trade this afternoon with the release of the ISM Manufacturing PMI, but the Fed’s anticipated interest rate decision this evening may wipe out any USD gains if there is no change in rates.
Pound Canadian Dollar (GBP/CAD) Exchange Rate Slips as Canadian GDP Soars
Despite a rise in the Pound Canadian Dollar (GBP/CAD) exchange rate on Tuesday morning due to reports on NAFTA negotiations, the ‘Loonie’ regained ground in the afternoon thanks to a 0.4% increase in May GDP figures.
Pound Australian Dollar (GBP/AUD) Exchange Rate Volatile in Light of Trade Worries
The Pound Australian Dollar (GBP/AUD) exchange rate trended lower on Tuesday as investors adopted a sunnier outlook on US-China trade talks.
However investor jitters rose overnight with reports that the US might pile on more tariffs on $200bn worth of Chinese imports.
The ‘Aussie’ may fare better on Wednesday with the release of Australia’s trade figures in June, which are projected to catch an updraft.
Pound New Zealand Dollar (GBP/NZD) Exchange Rate Strengthens with Increase in NZ Unemployment
The Pound New Zealand Dollar (GBP/NZD) exchange rate strengthened late on Tuesday with an unexpected rise in New Zealand’s unemployment rate in the second quarter.
The ‘Kiwi’ had initially made gains at the start of Tuesday’s session but Sterling regained lost ground following the unfavourable figures.
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