Published: 5 Sep at 3 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany, Russia, South Africa,
The Pound (GBP) is presently trading at 1.6320 on Friday versus the US Dollar (USD), with the exchange rate dipping to lows of 1.6284 thus far. The Pound slid further in the currency market yesterday following the revelation by the Bank of England that interest rates would remain at their current lows of 0.50% for what is now the 66th consecutive month. With the pace of the first rate hike facing much speculation and expectations continuously being pushed back further, many have lost faith in any Bank of England action in the near future. Economist Philip Shaw commented: ‚ÄėA number of question marks surround the timing of the first move.‚Äô
The Euro (EUR) is presently trading lower against other majors on Friday after the European Central Bank announced its decision to slash rates below the already historic low benchmark of 0.15%, to a shockingly small 0.05%. However, the Eurozone has seen some positivity on Friday by way of German Industrial Production that reached a healthier 2.5% in July, in comparison to June‚Äôs-0.4%, and the forecast 0.6%. The Euro however looks likely to continue scraping the bottom of the barrel against other majors dipping to lows of 1.2920 against the US Dollar (USD) so far this session.
US Dollar (USD)
The US Dollar (USD) has been highly popular in the currency market of late, with a continuation of positive US economic data released and encouraging statements by the Federal Reserve. The US Dollar however looks likely to continue its strengthening in the currency market, with the Euro (EUR) and Pound (GBP) remaining weak after central bank decisions proved unfavourable for both currencies on Thursday. The US Dollar is reaching highs of 0.6141 versus the Pound on Friday.
Canadian Dollar (CAD)
The Canadian Dollar (CAD) is currently trading in a tight range against the US Dollar (USD) between the boundaries of 0.9183 and 0.9200. The Canadian Dollar however will see an influential day on Friday with the release of the Canadian Net Change in Employment Full Time Employment Change, and Unemployment Rate figures this afternoon. The Bank of Canada
made the decision to keep interest rates at their current lows recently where they have remained for the latter four years. However, export growth increased leading to positive sentiment in the Canadian economy. Forex expert Jack Spitz commented on the Canadain economy‚Äôs outlook saying: ‚ÄėIt‚Äôs more optimistic.‚Äô
Australian Dollar (AUD)
The Australian Dollar (AUD) shot up against the US Dollar (USD) yesterday attaining highs of over 93.90 US Cents; a figure that it previously resided at for some time in the third quarter of this year. The ‚ÄėAussie‚Äô has continued to be popular in the currency market which has led to overvaluation claims by the Reserve Bank of Australia
; however, the Australian Dollar has softened in latter weeks. The ‚ÄėAussie‚Äô shot back up yesterday following the announcement from the European Central Bank regarding their shockingly low interest rates. The Australian Dollar is likely to continue its popularity in the near future, which appears to ignore any fluctuation in commodity prices. The AUD to USD exchange rate is presently trading at 0.9355.
The New Zealand Dollar (NZD) is currently trading in the region of 0.8283 versus the US Dollar on Friday, following a trend of softening in the latter four days. The ‚ÄėKiwi‚Äô is likely to remain lower with a current trajectory heading toward a fall by 1.3% this week against the mighty ‚ÄėBuck‚Äô as it continues to prove favourable with investors in the currency market. Industry expert Michael Johnston stated: ‚ÄėThe ‚ÄúKiwi‚Äôs‚ÄĚ going to remain a bit volatile, with the bias still to the downside.‚Äô
South African Rand (ZAR)
The South African Rand (ZAR) is presently trading lower against the US Dollar, as the currency market awaits the highly influential US jobs data this afternoon. Barclays Africa representative Judy Padayachee commented: ‚ÄėThere has been no change to the 12-week ranging action in the Dollar/Rand pair, which we expect to be maintained into next week.‚Äô Furthermore any developments in the situation between Russia and Ukraine are likely to affect the Rand as investor‚Äôs sentiment wanes in riskier currencies.
As of Friday, 5th September 2014, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2605, GBP USD exchange rate was 1.6326, GBP AUD exchange rate was 1.7404, GBP NZD exchange rate was 1.9597, GBP CAD exchange rate was 1.7764, GBP RUB exchange rate was 60.3631, and GBP ZAR exchange rate was 17.4472.