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Tue 16 Apr 2024 06:00GMT

GBP Strengthens, USD, EUR Exchange Rates Fluctuate after Manufacturing Reports

Published: 1 Dec at 4 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, India, Japan, Switzerland,

Pound Sterling
A stronger-than-expected UK Manufacturing PMI helped the Pound advance on several of its most traded currency counterparts. The British asset climbed against both the Euro and US Dollar over the course of the European session, with the GBP/EUR exchange rate achieving 1.26 and the GBP/USD exchange rate rising above 1.57. Tomorrow’s UK construction report could give the Pound further support if it also surprises to the upside.

US Dollar
Before the US ISM and Markit Manufacturing PMI’s were published, the US Dollar was softer against the Pound and Euro but trending in a stronger position against higher-risk currencies like the Australian Dollar and Indian Rupee. The US Dollar to Japanese Yen exchange rate was trending in the region of a seven-year high. If today’s US reports show continued growth in the manufacturing sector, the US Dollar could push higher.

The Euro initially softened against several of its currency counterparts in response to negative revisions to the manufacturing PMI’s of the Eurozone and several of its largest economies. However, as economists bet that the data could have printed even lower, the common currency’s declines were limited.

Australian Dollar
Overnight the Australian Dollar plummeted against the majority of its currency counterparts in response to the news that the Swiss Gold Referendum resulted in a no decision and that China’s manufacturing PMI printed below expected levels. The Reserve Bank of Australia’s upcoming interest rate announcement could have an impact on ‘Aussie’ trading in the hours ahead.

New Zealand Dollar
The New Zealand Dollar weakened against its fellows during the Australasian session due to news from China, faltering commodity prices and other external pressures. New Zealand’s Terms of Trade Index also recorded a -4.4% decline.

Canadian Dollar
The plummeting price of crude oil left the Canadian Dollar trending in a weaker position against its peers on Monday. The ‘Loonie’ was little changed after the Royal Bank of Canada’s Manufacturing PMI registered at 55.3 – above the 50 mark separating growth from contraction, but unchanged from the previous month.
As of Monday, 1st December 2014, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.2617, GBP USD exchange rate was 1.5733, GBP AUD exchange rate was 1.8556, GBP NZD exchange rate was 2.001, GBP CAD exchange rate was 1.7812, GBP CNY exchange rate was 9.6789, GBP INR exchange rate was 97.564, GBP JPY exchange rate was 186.1533, and GBP CHF exchange rate was 1.5178.
Dominic Lee About Author: (474 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.

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