Loading...

US Dollar Exchange Rates Improve ahead of Forecast GDP Boom

#News #EUR #GBP
Email share     Facebook     LinkedIn    Twitter

Pound Sterling: GBP Trade Mixed after Brexit ‘Stockpile’ Warning

On a day without much UK economic data, the Pound has appreciated against the Euro but fallen by -0.4% against the US Dollar.

This mixed performance follows news that the UK government is planning to stockpile food and medicine if there is a ‘no-deal’ Brexit.

Although this is considered an unlikely, worst-case scenario, the fact that a no-deal departure is being considered has still panicked GBP traders.

The Pound might be able to recover next Thursday, when the Bank of England (BoE) holds its next interest rate decision.

The UK central bank might commit to a long-awaited rate hike, which could send Pound Sterling soaring in value against its currency peers.

 

Euro: EUR Exchange Rates Drop on Cautious ECB Meeting

The Euro has fallen against the Pound and US Dollar today following an uninspiring European Central Bank (ECB) monetary policy meeting.

ECB policymakers kept interest rates at 0%, while ECB President Mario Draghi emphasised that there would not be any near-term rate hike unless the economic situation improved.

Euro exchange rate gains could continue on Monday next week, when a range of Eurozone confidence readings will be released.

These could cause EUR gains if they show rising optimism across the board.

 

US Dollar: USD Advances before Potential Rally on GDP Data

The US Dollar struggled against the Pound and Euro earlier today, but has since recovered and risen by over 0.4% against both peers, thanks to rising USD trader confidence.

Today’s US durable goods orders data proved somewhat positive, showing 1% growth in June which was below the expected 3% print.

More positive is Friday’s Q2 US GDP reading, which is tipped to rise from 2% to 4.1%. This would be a substantial increase in economic growth and could push the US Dollar higher.

 

Australian Dollar:  AUD Slides as US Dollar Recovers

The Australian Dollar has been in low demand today, falling by at least -0.3% against the Pound, US Dollar and Euro.

This poor performance comes as the US Dollar rises in value, making the Australian Dollar a less attractive currency for traders.

There may be Australian Dollar gains over the coming week, when Australian building permit stats come out on Tuesday.

These are tipped to show a 1.9% rise in permit approvals during June, which could boost the Australian Dollar over hopes for increased construction sector activity.

 

New Zealand Dollar: NZD Slides on USD Appreciation

Much like the Australian Dollar, the New Zealand Dollar has fallen in value today due to the US Dollar’s appreciation.

There has been a scarcity of NZ economic data over the past few days, with Tuesday’s surprise trade balance deficit lowering NZD trader confidence.

The New Zealand Dollar could post additional losses later this evening, if the ANZ consumer confidence reading shows an as-expected reduction during July.

 

Canadian Dollar: CAD Rallies on Higher Oil Prices

In a recurrent situation, the Canadian Dollar has appreciated against the Pound and Euro today due to rising oil prices.

In the CAD/USD pairing, however, the US Dollar has proven the stronger currency.

Conflict in the Middle East and attacks on oil tankers in the Red Sea have rattled commodity traders today, driving up the price of crude oil and boosting the Canadian Dollar in the process.

The Canadian currency could make further gains on Tuesday if May’s GDP reading shows a pickup from April’s unimpressive 0.1% growth reading.

 

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.
 

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

 

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