Published: 3 Sep at 1 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, South Africa,
The Pound (GBP) is presently trading at 1.6470 versus the US Dollar (USD), slightly higher than yesterday which saw Sterling soften against other majors. The Scottish Referendum is currently bruising the value of the Pound as the debate continues as to whether an independent Scotland could continue to use Sterling. Vice President of the European Parliament Olli Rehn has dented Scotlandâ€™s hopes of leaving the UK still using the Pound, and joining the EU. Rehn stated that this â€˜would simply not be possibleâ€™ for the Scots as they wouldnâ€™t have a central bank.
The Euro (EUR) has seen highs of 1.3148 on Wednesday versus the US Dollar (USD), and 0.7985 against the Pound (GBP). The Euro is likely to be affected by the European Central Bankâ€™s decision on Thursday, in which investors are hoping President Mario Draghi will be stating some adjustments to his current monetary policy. Although some believe a stint of quantative easing is needed in the Eurozone, others believe any major adjustments in monetary policy will occur later in the year.
US Dollar (USD)
The US Dollar (USD) is currently trending lower against the Pound (GBP) as Sterling attempts to claw back some of yesterdayâ€™s losses. Wednesday will see the release of the US Mortgage Applications, Factory Orders and the Beige Book which will evaluate the economic state of its district. The US has been continuously producing positive data releases of late which have enabled it to reach a high level in the currency market against other majors; more upbeat figures will bolster the â€˜Buckâ€™ further.
Canadian Dollar (CAD)
The Bank of Canada
(BoC) will today announce the decision of their direction for interest rates within the Canadian economy. The Bank of Canada are likely to keep their present interest rates on hold, as they have done in the latter four years. Economist Avery Shenfield stated: â€˜I think they bent over backwards [in July] to leave some chance that the next move is a rate cut. I think theyâ€™re inclined to try to do that one more time.â€™ The Canadian Dollar is presently trending higher against the Pound at 0.5563.
Australian Dollar (AUD)
The Australian Dollar (AUD) is currently trading up against the US Dollar (USD), climbing higher into the 93 US cents region at 0.9320. The Governor of the Reserve Bank of Australia
(RBA) Glenn Stevens has stated his concerns on Wednesday of the possibility of a housing bubble materialising in the Australian economy. Stevens commented: â€˜It is stating the obvious that at present , while we may desire to see a faster reduction in the rate of unemployment, further inflating an already elevated level of housing prices seems an unwise route to try to achieve that.â€™
The New Zealand Dollar (NZD) is currently trending higher against the US Dollar (USD) despite hovering a shade above six-year lows. The â€˜Kiwiâ€™ has bruised recently against other majors as the commodity prices for dairy products fell dramatically in recent weeks, with a large reduction in comparison to the start of the yearâ€™s prices. ANZ Bank representative Sam Tuck stated: â€˜A stronger US Dollar with more cream disappearing from the dairy picture and you have a recipe for the New Zealand Dollar to be lower.â€™ The NZD to USD exchange rate is presently trading in the region of 0.8332.
South African Rand (ZAR)
The South African Rand (ZAR) is trending higher in the market on Wednesday versus the US Dollar (USD) with the present USD/ZAR exchange rate dipping to lows of 10.6737. The Rand suffered when Manufacturing PMI highlighted another consecutive month of contraction, an effect of the strikes that have dominated 2014 in the South African economy. Executive of a South African construction firm Kobus Verster stated: â€˜In terms of civil engineering, mining activities and large infrastructure projects, thereâ€™s not much going on. In terms of manufacturing, especially our steel environment, thereâ€™s very limited demand and almost no growth.â€™
As of Wednesday, 3rd September 2014, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2518, GBP USD exchange rate was 1.6463, GBP AUD exchange rate was 1.762, GBP NZD exchange rate was 1.9777, GBP CAD exchange rate was 1.7926, and GBP ZAR exchange rate was 17.5822.