SendMoney.org.uk

Compare exchange rates, send money abroad and online

Mon 2 Dec 2024 17:39GMT

Exchange Rate News Today: GBP Strengthens on Likelihood of Conservative Victory

Published: 8 May at 9 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Germany, Greece,

Pound Sterling (GBP) Gains as Tories Take the Lead
The Pound has been subject to significant volatility over the past few weeks amid general election jitters. Political uncertainty caused the Pound to soften versus many of its major peers as traders feared a massive policy overhaul.
As the ballot counting continues, the likelihood of a Conservative victory has seen the Pound surge versus all of its major peers. Although a Tory victory could see a referendum on the European Union, bankers and businesses will welcome a Cameron win. Aiding the Pound’s uptrend was better-than-expected results from Halifax House Prices data. Trade Balance data, due for publication later on Friday morning, is unlikely to have a significant impact with the general election results dominating trader focus.

Euro (EUR) Softens on German Industrial Production
After having seen a mixed-bag of domestic data results on Thursday, the single currency softened versus many of its major peers. Increased fears of a Greek exit from the Eurozone, after a Greek government spokesperson stated that there would be no compromise on red lines, weighed on demand for the common currency. Friday has seen a continuation of the Euro downtrend after German Industrial Production failed to meet with the median market forecast figure. Better-than-expected German Trade Balance, however, has seen the losses slowed somewhat.

US Dollar (USD) Holds Gains despite Pared Fed Bets
After having endured a sustained bearish run, the US Dollar recovered a portion of those losses on Thursday after domestic data printed positively. Both Continuing Claims and Initial Jobless Claims bettered expectations. However, the long run of poor data results has caused futures traders to pare bets as to the timing of a Federal Reserve benchmark interest rate hike. Friday’s Change in Non-Farm Payrolls and Unemployment Rate will be of significance to those invested in the ‘Greenback’ (USD).

Australian Dollar (AUD) Strengthens on China’s Trade Surplus
After having registered less-than-ideal results from domestic labour market data, the ‘Aussie’ (AUD) softened versus the majority of its most traded currency rivals. The Oceanic currency is holding a position of strength, however, after futures traders speculated that the Reserve Bank of Australia (RBA) has ended the easing cycle.Friday has seen the ‘Aussie’ recover most of Thursday’s losses even after an RBA statement didn’t rule out the potential for further rate cuts. The advance can be attributed to positive trade data out of China which showed the surplus rose above expectations.

New Zealand Dollar (NZD) Softens amid Rate Cut Speculation
With an absence of domestic data to provoke changes, the ‘Kiwi’ (NZD) softened versus most of its major peers on Thursday. Rocky market sentiment amid geopolitical tension in Europe is weighing heavily on demand for the South Pacific currency. The New Zealand Dollar continues to soften versus most of its major rivals amid speculation that the Reserve bank of New Zealand (RBNZ) will cut rates during the next policy meeting thanks to deflationary pressures.

Canadian Dollar (CAD) Declines on Crude Prices
After Thursday’s Canadian economic data printed positively, the ‘Loonie’ (CAD) climbed versus many of its most traded currency competitors. The appreciation was aided by rising crude prices amid speculation of slow US production. Friday has seen the Canadian Dollar soften fractionally as oil prices resume declination amid tension in the Middle East.
As of Friday, 8th May 2015, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.3792, GBP USD exchange rate was 1.545, GBP AUD exchange rate was 1.9485, GBP NZD exchange rate was 2.0629, GBP CAD exchange rate was 1.8655, and GBP CNY exchange rate was 9.5935.
Dominic Lee About Author: (474 Posts)With over ten years experience as an economist – including four years spent as a chief economist with a major currency broker – Dominic has acquired a wealth of knowledge which he uses to forecast market movements. Dominic now works as an independent business advisor and writes for several financial publications.

Live Exchange Rates