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Fri 21 Feb 2020 08:51GMT

Forex Forecast: US Dollar Bullishness Continues, Pound Fluctuates

Published: 9 Feb at 12 PM 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
A lack of UK data and bets that this week’s Bank of England quarterly inflation report will be dovish saw the Pound ease lower against peers like the US Dollar and Euro on Monday. While tomorrow’s UK Manufacturing/Industrial Production figures are expected to show a month-on-month decline in December, a surprising result would be Sterling supportive.

US Dollar
Friday’s impressive US employment figures continued to lend the ‘Greenback’ support on Monday and the US currency retained a bullish relationship with the majority of its currency counterparts. The next domestic cause of US Dollar movement is likely to be tomorrow’s Wholesale Inventories report. Investors will also be looking ahead to the week’s advance retail sales numbers.

Euro
Although the situation between Greece and its creditors is growing ever more tense, the common currency was bolstered by better-than-expected domestic data at the beginning of the week. Germany posted a surprisingly wide trade surplus while the Eurozone’s measure of investor confidence surged.

Australian Dollar
A report showing a steep declination in Chinese imports weighed heavily on the Australian Dollar during the local session. The ‘Aussie’ approached a fresh five and a half year low against the US Dollar and continued trading in a weaker position against the Pound. This week’s Australian employment figures may prove to be the biggest ‘Aussie’ mover.

New Zealand Dollar
Ahead of the publication of New Zealand’s REINZ Housing Price Index and House Sales figure, the ‘Kiwi’ was trading up over 0.5% against the Pound. The New Zealand Dollar was bolstered last week by climbing dairy prices and hints that the Reserve Bank of New Zealand will refrain from cutting borrowing costs, and this uptrend has continued.

Canadian Dollar
At the close of last week, the Canadian Dollar gained on the majority of its currency counterparts following the publication of unexpectedly strong Canadian employment figures. However, poor Chinese trade data and fluctuating oil prices have since seen the ‘Loonie’ pare its advance. Today’s Canadian Housing Starts report could have a modest impact on the commodity-driven currency.

As of Monday, 9th February 2015, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.3436, GBP USD exchange rate was 1.5215, GBP AUD exchange rate was 1.9514, GBP NZD exchange rate was 2.0557, GBP CAD exchange rate was 1.8981, and GBP CNY exchange rate was 9.505.
Dominic Lee About Author: (393 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.

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