Published: 4 Nov at 5 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China,
On Monday the Pound was supported by an impressive UK Manufacturing PMI. However, Sterling shed these gains on Tuesday after the nationâ€™s Construction PMI registered a steeper than anticipated decline. Tomorrowâ€™s Services/Composite PMI will inspire another bout of Pound movement ahead of the Bank of England interest rate decision on Thursday.
The US Dollar softened during the North American session as the US trade deficit widened by more-than-anticipated. The increase in the shortfall was primarily due to a drop in exports. The â€˜Greenbackâ€™ was also adversely affected by a -0.6% fall in domestic factory orders. While tomorrowâ€™s US ISM Non-Manufacturing Composite Report will have an impact on the US Dollar, investors will also be looking ahead to Fridayâ€™s US Non-Farm Payrolls figure.
After the European Commissionâ€™s Economic Forecasts were published the Euro came under widespread pressure. The Commission slashed its growth projections for the Eurozone for both 2014 and 2015, undermining demand for the Euro in the process. The common currency is also trending on the back foot prior to Thursdayâ€™s European Central Bank interest rate decision.
While the Australian Dollar lost ground on Monday as a result of disappointing domestic and Chinese data, the South Pacific currency staged a rebound on Tuesday. The â€˜Aussieâ€™ gains derived from a report showing that Australian retail sales surged in September. The Reserve Bank of Australia
â€™s interest rate decision had little impact on the Australian Dollar as the decision to leave interest rates on hold had been largely priced into the market.
Ahead of the publication of New Zealandâ€™s third quarter employment figures, the New Zealand Dollar was trending in a stronger position against the Pound, Euro and US Dollar. A solid employment gain could help the â€˜Kiwiâ€™ claw back some of its recent losses.
On Tuesday depressed crude oil prices took the Canadian Dollar to a five-year low against the US Dollar. The commodity-driven asset also shed 0.5% against the Pound. As stated by forex strategist Camilla Sutton; â€˜The near-term Canadian Dollar outlook has deteriorated materially and the downward trend is too strong to fight.â€™
As of Tuesday, 4th November 2014, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2751, GBP USD exchange rate was 1.6005, GBP AUD exchange rate was 1.8295, GBP NZD exchange rate was 2.0457, GBP CAD exchange rate was 1.8235, and GBP CNY exchange rate was 9.7875.