Published: 5 Nov at 2 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Germany,
After the UKâ€™s Services PMI was shown to have fallen to 56.2 (rather than easing to 58.5 as expected) the Pound posted notable declines against the US Dollar, falling to a one-year low. The British currency also softened against the Euro. However, a sell-off in commodity currencies ensured that the Pound retained the upper hand against the Australian and New Zealand
Before the US published its ISM Non-Manufacturing index the US Dollar was enjoying a bullish relationship with the majority of its currency counterparts. The â€˜Greenbackâ€™ softened on Tuesday after the US trade deficit widened by more-than-anticipated, but managed to recover ground following a Republican victory in the US midterm elections. If the gauge of the US services sector is positive the US Dollar could push higher in the hours ahead.
The Euro might have been able to strengthen against a struggling Pound on Tuesday, but the news that retail sales in the Eurozone fell by considerably more-than-expected in September (month-on-month) saw the common currency weaken against most of its peers. Sales were down -1.3% on the month. A fall of -0.8% had been forecast. Markit Services/Composite PMIs for the Eurozone and Germany
were also negatively revised.
With the price of Brent oil futures falling by 0.7%, commodity currencies like the Australian Dollar plummeted against their peers. The â€˜Aussieâ€™ slumped to a four-year low against the US Dollar and shed over 1.0% against the Pound. Australia
â€™s latest batch of employment figures could cause further Australian Dollar movement overnight.
New Zealand Dollar
Although the New Zealand Dollar initially advanced on rivals like the Pound and US Dollar after domestic employment stats smashed forecasts, weaker data from China
and a widespread selloff in commodity currencies later undermined demand for the â€˜Kiwiâ€™. The Pound Sterling to New Zealand Dollar exchange rate was able to advance by 0.5% in spite of soft UK services PMI.
With Canadian data lacking and investors ditching commodity-driven assets in the face of a further slide in oil prices, the Canadian Dollar weakened on Wednesday. Tomorrow Canada
is set to publish both its Building Permits report and Ivey Purchasing Managers Index. It would take some really impressive domestic stats for the â€˜Loonieâ€™ to start clawing back some of its recent losses.
As of Wednesday, 5th November 2014, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2794, GBP USD exchange rate was 1.5964, GBP AUD exchange rate was 1.8609, GBP NZD exchange rate was 2.0697, GBP CAD exchange rate was 1.8191, and GBP CNY exchange rate was 9.7601.