Published: 7 Jan at 12 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada,
Although todayâ€™s UK reports were of little note, the Pound continues to be pressured by yesterdayâ€™s concerning UK Services PMI. Tomorrowâ€™s Bank of England interest rate decision is unlikely to inspire much Sterling movement as the central bank is largely expected to leave fiscal policy unaltered.
If todayâ€™s FOMC meeting minutes are hawkish in tone, as many industry experts believe will be the case, the US Dollarâ€™s bullish relationship with peers like the Pound and Euro is likely to continue. The North American asset was little affected by yesterdayâ€™s below-forecast US services data.
As the pace of inflation in the Eurozone fell to -0.2% year-on-year, giving the European Central Bank even more reason to deploy aggressive stimulus measures later this month, the common currency fell against almost all of its rivals on Wednesday.
As the recent rally in gold prices paused ahead of the release of minutes from the latest Federal Open Market Committee policy meeting, the Australian Dollar shed some of its recent gains. The â€˜Aussieâ€™ also came under pressure as the AiG Performance of Services Index remained below the 50 mark separating growth from contraction, although the measure did show improvement.
With dairy prices finally on the rise, the New Zealand Dollar advanced on its Australian relation. The New Zealand Dollar was also stronger against the Euro and Pound in spite of a steep monthly decline in New Zealandâ€™s commodity price index.
With the price of crude oil extending its downtrend, the Canadian Dollar softened. The â€˜Loonieâ€™ posted a modest decline against the Pound and maintained its bearish relationship with the US Dollar. In the hours ahead the Canadian Dollar could experience movement as a result of the domestic Ivey Purchasing Managers Index. A decrease from 56.9 to 53 is expected.
As of Wednesday, 7th January 2015, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2765, GBP USD exchange rate was 1.5105, GBP AUD exchange rate was 1.8706, GBP NZD exchange rate was 1.9442, and GBP CAD exchange rate was 1.7853.