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Tue 11 Aug 2020 07:59GMT

Pound (GBP) Struggles Before GDP, Australian Dollar (AUD) Moved by RBA

Published: 7 Oct at 12 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany,

Pound Sterling GBP
The Pound pushed higher against the Euro but held losses against the US Dollar and Australian Dollar on Tuesday as investors reacted to the UK’s Manufacturing and Industrial Production reports without enthusiasm. The data showed stagnation in industrial output in August and just a 0.1% increase in manufacturing output. If today’s UK GDP estimate for September also disappoints, the Pound could extend declines.

US Dollar USD
Friday’s impressive US non-farm payrolls report saw the US Dollar push higher across the board. However, a bout of profit-taking and mixed forecasts for US interest rate increases undermined the ‘Greenback’ on Monday. The safe-haven currency has since recovered losses and may be boosted further today by US Consumer Credit figures.

Euro EUR
A concerning Industrial Production report for Germany put considerable strain on the Euro during the local session. The report was the latest in a line of worrying ecostats for the Eurozone’s largest economy and adds to fears that the Eurozone may be on the verge of falling back into recession. The Euro continues to trend lower against both the Pound and US Dollar.

Australian Dollar AUD
The Australian Dollar fluctuated during the Australasian session as the AiG Performance of Construction index surprised to the upside and the Reserve Bank of Australia delivered its latest interest rate decision. The central bank left interest rates on hold and hinted that it will be maintaining a stable outlook for borrowing costs. The AUD/USD exchange rate fluctuated before steadying to trade in the region of 0.8774.

New Zealand Dollar NZD
The New Zealand Dollar tracked its South Pacific peer higher on Tuesday, although it was adversely affected by a concerning NZIER Business Opinion Survey. The gauge of business sentiment came in at 32 in the second quarter but only managed a reading of 19 in the third quarter.

Canadian Dollar CAD
On Monday the ‘Loonie’ was supported against its rivals by an unexpectedly strong Canadian Ivey Purchasing Managers Index. The gauge surged from 50.9 to 58.6, smashing estimates for a reading of 52.5. The Canadian Dollar has since trimmed its initial gains against the Pound but could rebound if today’s Building Permits report surprises to the upside.
As of Tuesday, 7th October 2014, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.2707, GBP USD exchange rate was 1.6096, GBP AUD exchange rate was 1.8277, GBP NZD exchange rate was 2.057, and GBP CAD exchange rate was 1.7964.
Patrick James About Author: (289 Posts)Patrick completed his economics degree just as the global financial crisis struck in 2008. In the intervening years Patrick has made his mark, climbing to a prominent position within a large financial services provider. As part of his role Patrick uses his expertise to advise companies of the best ways to safeguard against currency risk.

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