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Fri 21 Feb 2020 09:22GMT

Canadian Dollar Volatility Likely, GBP Trends Higher, AUD Plummets on GDP

Published: 3 Dec at 3 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada,

Pound Sterling
Over the course of the European session the Pound advanced to a three-week high against the Euro as investor demand for the British asset increased following a stronger-than-anticipated UK services report. The GBP/EUR pairing climbed to a high of 1.2733, jumping by 0.7% on the day’s opening levels. The Pound was also slightly stronger against the US Dollar ahead of the release of the US ISM Non-Manufacturing report.

US Dollar
The US Dollar faltered slightly during local trading as the US ADP Employment Change Report showed a smaller-than-anticipated jobs gain. The US was shown to have added 208,000 positions in November rather than the 222,000 expected. The ‘Greenback’ slid against the Pound after the data was released but could recoup losses if the US services sector reports impress.

Euro
On Wednesday the Euro was trending lower across the board as investors reacted to a run of disappointing reports for the Eurozone. Services/Composite PMI’s for some of the currency bloc’s largest economies were negatively revised and the region recorded smaller-than-anticipated retail sales growth. The Euro to Pound Sterling exchange rate fell by 0.8% while the Euro to US Dollar exchange rate lost 0.6%.

Australian Dollar
The news that Australia’s economy expanded by less-than-expected in the third quarter of the year left the ‘Aussie’ struggling against the majority of its currency counterparts on Wednesday. The quarterly growth of 0.3% was less than half the 0.7% expansion anticipated and added to the argument in favour of the Reserve Bank of Australia issuing an interest rate cut in the near future.

New Zealand Dollar
The threat of drought having an adverse impact on New Zealand’s dairy farmers kept the ‘Kiwi’ under pressure during the South Pacific session. The commodity-driven currency was trending lower against peers like the Pound and Euro ahead of the release of New Zealand’s House Price data.

Canadian Dollar
Prior to the Bank of Canada’s interest rate announcement, the Canadian Dollar was trading in a stronger position against the US Dollar, Euro and Australian Dollar. The CAD/GBP exchange rate was down 0.2% on the day’s opening levels however as positive UK news gave Sterling a lift. Hawkishness from the BOC could push the ‘Loonie’ higher in the hours ahead.
As of Wednesday, 3rd December 2014, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.2743, GBP USD exchange rate was 1.5693, GBP AUD exchange rate was 1.8687, GBP NZD exchange rate was 2.0243, and GBP CAD exchange rate was 1.7834.
Patrick James About Author: (289 Posts)Patrick completed his economics degree just as the global financial crisis struck in 2008. In the intervening years Patrick has made his mark, climbing to a prominent position within a large financial services provider. As part of his role Patrick uses his expertise to advise companies of the best ways to safeguard against currency risk.

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