Published: 6 Aug at 4 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany, Greece,
Pound Sterling (GBP)
The British Pound dived versus the majority of its currency rivals after the bank of England (BoE) kept rates on hold. Although most analysts expected the Monetary Policy Committee (MPC) to hold the cash, many predicted that more policymakers would dissent and call for an immediate hike. Only one MPC member, Ian McCafferty, opted for an immediate hike. Mixed results from economic data also weighed on demand for the Pound. House Prices and Industrial Production both failed to meet with the respective median market forecasts on both an annual and a monthly basis.
Although European economic data produced mixed results, the shared currency edged higher versus many of its currency rivals. The appreciation was mostly the result of positive results from the German and Eurozone Retail PMIs. Additional common currency gains can be linked to easing concerns regarding Greece
â€™s stock market after bank shares recover from three consecutive days declination.
US Dollar (USD)
Mixed results from US data caused the US Dollar to hold a position of strength on Thursday. The initial appreciation was the result of positive sentiment after Wednesdayâ€™s ISM Non-Manufacturing Composite bettered estimates. Most economistsâ€™ believe that the Federal Reserve will be the first major central bank to hike the cash rate so analysts are closely scrutinising data results to better inform speculation as to the timing of a benchmark interest rate increase.
Canadian Dollar (CAD)
After Wednesdayâ€™s US data showed that US crude oil inventories had slumped well beyond expectations, the â€˜Loonieâ€™ (CAD) rallied versus its peers. The Canadian Dollar continues to strengthen on Thursday as oil prices edge higher. However, most expect the Canadian Dollar to return to depreciation as the Fed looks to tighten policy.
Australian Dollar (AUD)
With increasing bets regarding a near-term Fed rate hike, the â€˜Aussieâ€™ (AUD) slumped versus many of its peers. Damp market sentiment and bearish commodity prices have weighed on demand for the Australian asset, something which will please the Reserve Bank of Australia
(RBA) looking for further domestic currency devaluation. Australian economic data produced mixed results. However, a particularly disappointing rise in unemployment weighed heavily on the South Pacific asset.
The New Zealand Dollar held gains against its Oceanic counterpart thanks to an absence of domestic data. However, the â€˜Kiwiâ€™ (NZD) remains weak against many of its currency rivals amid cooling commodities and speculation as to a near-term rate cut from the Reserve Bank of New Zealand.
As of Thursday, 6th August 2015, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.4195, GBP USD exchange rate was 1.5511, GBP AUD exchange rate was 2.1123, GBP NZD exchange rate was 2.3692, and GBP CAD exchange rate was 2.0337.