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Mon 15 Jul 2024 08:31GMT

Euro (EUR) And Pound (GBP) Weaken Ahead of ECB and BOE Rate Decisions

Published: 1 Aug at 10 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, Ireland, Italy, Japan, South Africa, Portugal,

Pound Sterling
GBP/EUR – Trading in the Region of 1.1444
Positive Euro news saw the common currency broadly strengthen yesterday, and the Pound slumped to a four and a half month low against its European peer. However, the Pound was able to strengthen slightly against the US Dollar following the FOMC announcement.Today’s Bank of England’s rate decision is likely to trigger Sterling fluctuations in the hours ahead.

US Dollar
USD/EUR – Trading in the Region of 0.7536
A more dovish than expected policy statement from the Federal Open Market Committee reduced the odds of the central bank tapering stimulus in September, and the US Dollar softened slightly as a result. However, ‘Greenback’ losses were limited ahead of the release of US employment and manufacturing data.

Euro (Currency of Germany, France, Spain, Italy, Portugal, Greece, Ireland etc)
EUR/USD – Trading in the Region of 1.3238
After hitting a four and a half month high against the Pound yesterday, the Euro was little changed this morning prior to the European Central Bank rate decision. As European trade progressed the Euro was supported by the news that manufacturing PMI for the Eurozone and Germany unexpectedly climbed.

Australian Dollar
AUD/USD – Trading in the Region of 0.8970
Australia’s performance of manufacturing index tumbling from 49.6 to 42.0 in July increased the likelihood of the Reserve Bank of Australia issuing a rate cut when it meets next month. Consequently, the ‘Aussie’ slumped to an almost three-year low against its Australian counterpart during the local session. However, the South Pacific currency was able to recoup some losses as China’s manufacturing PMI unexpectedly expanded.

New Zealand Dollar
NZD/USD – Trading in the Region of 0.7958
An absence of domestic developments saw the New Zealand Dollar extend declines against its US counterpart for a fourth day. In the days ahead ‘Kiwi’ movement is most likely to occur in response to news from the US, Eurozone and China.

Canadian Dollar
CAD/USD – Trading in the Region of 0.9714
Although slightly disappointing Canadian GDP figures prompted ‘Loonie’ losses during the local session, Canada’s commodity driven currency enjoyed a rebound as trade progressed and investors debated the odds of the Bank of Canada tightening monetary policy before the end of next year.

Japanese Yen
USD/JPY – Trading in the Region of 98.6700
Japan’s Yen weakened against its safe-haven US rival during Australasian trading as a report showed that Japanese investors sent funds into foreign bonds for another week. Asian shares also advanced following the release of better-than-forecast manufacturing data for China.

South African Rand
ZAR/USD – Trading in the Region of 9.8925
After weakening modestly against its US peer yesterday South Africa’s Rand remains under pressure today as investors await the release of US employment data. However, the commodity-driven Rand did receive some support from better than forecast data for China and the Eurozone.
As of Thursday, 1st August 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1442, GBP USD exchange rate was 1.5118, GBP AUD exchange rate was 1.6908, GBP NZD exchange rate was 1.9136, GBP CAD exchange rate was 1.5644, GBP CNY exchange rate was 9.2681, GBP JPY exchange rate was 150.3034, and GBP ZAR exchange rate was 15.0827.
Laura Parsons About Author: (360 Posts)Laura works in the financial sector as a currency analyst, studying the latest global economic developments and assessing their impact on the foreign exchange market. Laura uses her currency knowledge to write articles focussing on market movements and trends for several independent financial websites.

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