US Non-Farm Payrolls to Cause USD, AUD, NZD Exchange Rate Movement

Published: 6 Mar at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada,

Pound Sterling
The Bank of England kept interest rates and the asset purchase target unchanged on Thursday, as economists expected. The decision had little impact on the Pound and the British asset remained trading in the region of a seven-year high against the Euro. The BoE/GfK Inflation report could cause some Sterling fluctuations as inflation expectations for the next 12 months have eased from 2.5% to 1.9%.

Euro
The common currency faltered on Thursday as investors deemed the European Central Bank’s policy statement ‘too vague’. The ECB hinted that quantitative easing could extend beyond September 2016, but gave no concrete details. Friday’s surprisingly strong industrial production data for the Eurozone had little impact on the Euro.

US Dollar
Today’s US Non-Farm Payrolls report could spark notable US Dollar volatility. The ‘Greenback’ is currently trading in a stronger position against most of its peers despite yesterday’s below-forecast jobless claims and factory orders figures. If the US unemployment rate softens, as economists expect to be the case, the US Dollar could extend gains.

Australian Dollar
Comments indicating that the Reserve Bank of Australia is less concerned with the value of the ‘Aussie’ than formally gave the South Pacific asset a boost before the weekend. Australian reports to be aware of next week include the nation’s Consumer and Business Confidence figures.

New Zealand Dollar
The New Zealand Dollar posted broad-based declines during the local session in response to reports that the RBNZ has plans to restrict property lending. Bets that the central bank may also cut interest rates in the near future put the ‘Kiwi’ under further pressure.

Canadian Dollar
Ahead of the release of Canada’s building permits report, the Canadian Dollar was trading in a slightly softer position as investors engaged in some profit taking. The ‘Loonie’ was supported earlier in the week as the Bank of Canada left interest rates on hold.
As of Friday, 6th March 2015, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.3868, GBP USD exchange rate was 1.5037, GBP AUD exchange rate was 1.9489, GBP NZD exchange rate was 2.0419, and GBP CAD exchange rate was 1.8981.

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