SendMoney.org.uk

Compare exchange rates, send money abroad and online

Fri 19 Jul 2019 02:30GMT

As Traders await Key Ecostats GBP Edges Higher, EUR Dives and USD Gains

Published: 1 Jun at 9 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, France, Germany, Greece, Italy,

Pound Sterling (GBP)
In expectation of a better-than-forecast British Manufacturing PMI, the Pound edged higher against many of its closest rivals on Monday morning. The Confederation of British Industry (CBI) stated that they believe the UK economy grew at its fastest pace for 12 months so traders will be looking towards economic data publications to solidify that statement.
Positive data out of Europe will boost demand for the Pound also, so those invested in the British asset will be hoping German inflation data will print positively.

Euro (EUR)
With a lack progress made over the weekend with regards to Greece securing bailout funds, the shared currency slumped versus nearly all of its closes currency competitors. Greek officials have been standing firm against austerity proposals which contradict their electoral red-lines. This has resulted in mounting speculation that the Hellenic nation will be forced to leave the Eurozone.
The shared currency softened on Monday morning despite registering reasonably positive domestic data results thus far. Both Italian and French Manufacturing PMIs bettered their respective median market forecast figures.

US Dollar (USD)
After US growth data failed to contract as much as economists’ had predicted at the tail-end of last week, the US Dollar advanced versus most of its major peers. This was fuel to a sustained bullish run as traders contemplate the prospect of a Federal Reserve benchmark rate hike before the close of the year.
US data is likely to cause ‘Greenback’ (USD) volatility on Monday. In particular, traders will be looking towards ISM Manufacturing as a good indicator of US economic standing. A particularly poor result will end US Dollar bullishness and cause traders to question bets as to the timing of qa lending rate increase.

Australian Dollar (AUD)
In response to better-than-expected domestic data, the Australian Dollar strengthened versus many of its closest rivals. Of particular significance was the AiG Performance of Manufacturing Index which moved out of contraction territory in May. Additional gains are the result of China’s Manufacturing PMI which managed to stay above the 50 mark which separates growth from contraction. ‘Aussie’ (AUD) movement is likely to be relatively sluggish ahead of Tuesday’s Reserve Bank of Australia (RBA) Rate Decision. Although most don’t expect the central bank to change the rate, the recent run of disappointing data results may weigh on policymaker decisions.

New Zealand Dollar (NZD)
The New Zealand Dollar softened versus many of its most traded currency competitors amid difficulties in the dairy industry. With New Zealand’s largest dairy producer, Fonterra, cutting its payout to farms, and recent poor domestic data results indicating economic slowdown, speculation that the Reserve Bank of New Zealand (RBNZ) will be forced to intervene has caused the ‘Kiwi’ (NZD) to slump.

Canadian Dollar (CAD)
After economic data on Friday showed the Canadian Gross Domestic Product (GDP) contracted unexpectedly, the ‘Loonie’ (CAD) dived versus its major peers. The depreciation continues on Monday as low fuel prices sees dampened demand for the commodity-correlated asset. The Canadian Manufacturing PMI, due for publication later on Monday, has the potential to provoke changes, however.
As of Monday, 1st June 2015, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.3911, GBP USD exchange rate was 1.5202, GBP AUD exchange rate was 1.9969, GBP NZD exchange rate was 2.1405, GBP CAD exchange rate was 1.9042, and GBP CNY exchange rate was 9.4246.
Dominic Lee About Author: (361 Posts)With over ten years experience as an economist – including four years spent as a chief economist with a major currency broker – Dominic has acquired a wealth of knowledge which he uses to forecast market movements. Dominic now works as an independent business advisor and writes for several financial publications.

Live Exchange Rates