Published: 2 Apr at 10 AM Tags: Euro, Dollar, Pound Sterling, America, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Japan, South Africa,
The Pound likely to see little movement today against its major peers due to a lack of domestic economic data releases. Sterling was weakened yesterday by the release of worse-than-expected manufacturing PMI data. The report showed that the sector expanded at its slowest pace in 8-months in March. Due to the lack of domestic data the currency will be influenced by events in the Eurozone and United States
The US currency remains under pressure however from Mondayâ€™s comments by Federal Reserve Chairman Janet Yellen who said that the Central Bankâ€™s monetary easing programme will be needed for some time. The major data release due today for the currency is the latest ADP Employment change report. A strong reading is likely to boost the Dollar and increase optimism over the health of the worldâ€™s largest economy.
The Euro firmed against its major peers after European Central Bank Vice President Vitor Constancio said that the Eurozone will avoid suffering from deflation as the regionâ€™s recovery continues. The currency also found support from a report which showed that unemployment in the Eurozone eased slightly in February. According to Eurostat the unemployment rate softened to 11.9% meaning that 18.97 million people across the region are out of work.
The â€˜Aussieâ€™ softened against the Pound and other major peers after it was weakened by the release of disappointing building approvals data. Official data showed that the number of building approvals in the country fell by 5% in February.
The New Zealand Dollar declined against the US Dollar today, as investors took profits following the â€˜kiwi'sâ€™ rally to 31-month highs against the â€˜Greenbackâ€™.
The Canadian Dollar made a second day of gains yesterday after positive manufacturing data gave investors confidence. The Royal Bank of Canada
â€™s manufacturing PMI climbed in March; the report was the 12th consecutive monthly rise.
The Yen fell to its lowest level since mid-January overnight as investors raised their expectations that the Bank of Japan will introduce further stimulus, a contrast to the Federal Reserveâ€™s policy of tapering its own easing programme. A rise in consumption tax was the main factor for the rise in speculation.
South African Rand
The Rand is hovering close to a three-month high after retreating slightly this morning. The currency could see some movement today due to the release of the latest South African consumer confidence report and Eurozone data.
As of Wednesday, 2nd April 2014, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2077, GBP USD exchange rate was 1.6624, GBP AUD exchange rate was 1.7982, GBP NZD exchange rate was 1.9391, GBP CAD exchange rate was 1.8332, GBP JPY exchange rate was 172.6734, and GBP ZAR exchange rate was 17.634.