Published: 4 Sep at 11 AM 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 1.6454 versus the US Dollar (USD) ahead of the Bank of England‚Äôs (BoE) Interest Rate Decision at Midday today. The Bank of England is expected to keep interest rates on hold at the present low of 0.50% whilst the UK economy tightens slack. The last meeting found a split vote for the first time among the policy members since 2011 lending some hope to the prospect of interest rate hikes looming closer in the imminent future.
The Euro (EUR) is trending lower ahead of the highly influential European Central Bank (ECB) meeting today which will reveal the plans regarding monetary policy in the Eurozone. The Eurozone has suffered a period of low inflation which has led some economists to believe deflation could become prominent in the near future. Forex experts Zsolt Darvas and Guntrum Wolff stated: ‚ÄėMonetary policy alone would be too slow in pushing inflation back to 2%, and therefore national fiscal and income policies should also play a major role in this process.‚Äô The Euro is currently trading at 1.3141 against the US Dollar (USD).
US Dollar (USD)
The US Dollar (USD) is strong in the currency market trading in the region of 0.6078 against the Pound (GBP). The ‚ÄėBuck‚Äô has seen favour recently as speculation continues to circulate regarding the possibility of interest rate hikes by the Federal Reserve. The US Dollar looks on course to continue strengthening in anticipation of rate raises and a more hawkish Fed.
Canadian Dollar (CAD)
The Canadian Dollar (CAD) is currently attaining highs of 0.9190 against the US Dollar (USD) on Thursday, with only the International Merchandise Trade figures due to reflect the effectiveness of the Canadian economy today. Friday however will see more activity by way of domestic data for Canada
such as Net Change in Employment, Unemployment Rate and Full Time Employment Change figures.
Australian Dollar (AUD)
The Australian Dollar (AUD) is presently trading in the region of 0.9338 against the US Dollar (USD) creeping higher into the mid 93 US cents range. Meanwhile the Australian Dollar to Pound (GBP) currency pairing is trading lower also at 0.5670. All eyes today rest on the European Central Bank and its interest rate decision which will take place later today to see the effects of their latest stance on monetary policy. National Australia
Bank representative Emma Lawson stated: ‚ÄėMost expect the ECB to make a change; failure to ease policy would lead to a rally in the Euro and potential Australian Dollar underperformance.‚Äô
The New Zealand Dollar (NZD) is trending lower against the US Dollar (USD) on Thursday at 0.8320 and also lower against the Australian Dollar (AUD) currently reaching 0.8908. The New Zealand Dollar however looks likely to continue depreciating against the ‚ÄėAussie‚Äô which is gaining popularity in the market. Westpac representative Imre Speizer commented: ‚Äė‚ÄĚAussie‚ÄĚ looks like it‚Äôs onwards and upwards against the ‚ÄúKiwi‚ÄĚ for the long haul.‚Äô
South African Rand (ZAR)
The US Dollar (USD) is currently trading lower in the region of 10.6737 versus the South African Rand (ZAR) after business confidence rose in South Africa
and supported the Rand. The currency market however is eagerly awaiting the result of President Mario Draghi of the European Central Bank‚Äôs meeting today to make the latest interest rate decision. Rand Merchant Bank stated: ‚ÄėThe ECB has a long history of confounding bullish expectations but, at the same time, has occasionally taken a sharp unexpected easing step.‚Äô All majors will experience some fluctuation in the latter half of Thursday following the European Central Bank‚Äôs decision and the effect it has on the Euro (EUR).
As of Thursday, 4th September 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 1.632, GBP AUD exchange rate was 1.7472, GBP NZD exchange rate was 1.9681, GBP CAD exchange rate was 1.7759, and GBP ZAR exchange rate was 17.5184.