Published: 9 Mar at 5 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China,
GBP Edges Higher on Production Data
Improved UK Industrial and Manufacturing Production figures have helped to shore up the Pound today, offering encouragement to investors as the outlook of the UK economy remains clouded by â€˜Brexitâ€™ uncertainty. Some of the shine was taken off the resultant rally by a less optimistic NIESR Gross Domestic Product Estimate as growth was predicted to have slowed further to 0.3% in the three months to February.
EUR Trends Lower ahead of ECB Decision
Positioning ahead of tomorrowâ€™s European Central Bank (ECB) policy meeting has seen the Euro trend lower across the board, with investors still confident that President Mario Draghi will not disappoint on monetary loosening measures. Despite a stronger fourth quarter Eurozone GDP pressure remains high for policymakers to ease further, particularly after an under-delivery on dovish rhetoric in December prompted a sharp spike in Euro value.
Discouraging Wholesale Inventories Dent USD
A disappointing US Wholesale Inventories report has prompted the US Dollar to soften this afternoon, as inventories unexpectedly rose. Seeming to point towards a weaker level of consumer demand, this further dampened the odds of the Federal Open Market Committee (FOMC) taking a more hawkish outlook on monetary policy. With safe-haven demand diminished there has been little incentive for investors to favour the â€˜Greenbackâ€™ today.
BOC Hold Steady to Boost CAD
Confidence in the Canadian Dollar has seen a resurgence after the Bank of Canada
(BOC) opted to leave interest rates unchanged today. Brent crude has also been on an uptrend, breaking back above $40 per barrel following rumours that OPEC and other oil producers could soon be meeting to discuss the current supply glut. Should these prove founded the â€˜Loonieâ€™ is likely to remain on a stronger trend.
Iron Ore Price Jump Shores up AUD
An unexpected leap in the price of iron ore â€“ precipitated by one of China
â€™s steel-producing cities being mandated to shut down in preparation of a horticultural event â€“ has helped to keep the â€˜Aussieâ€™ on stronger form today. Markets have recovered from yesterdayâ€™s risk aversion as hopes for further economic stimulus from the Peopleâ€™s Bank of China (PBoC) bolsters demand for commodity-correlated currencies.
NZD Softens in Anticipation of RBNZ Policy Move
The appeal of the New Zealand
Dollar remains muted ahead of tonightâ€™s Reserve Bank of New Zealand (RBNZ) policy decision, with some concerned by the possibility that policymakers may elect to cut interest rates. However, as market consensus seems to favour a rate hold the â€˜Kiwiâ€™ is likely to see a strong rebound overnight with a lack of monetary loosening suggesting a greater degree of confidence in the domestic economy.
As of Wednesday, 9th March 2016, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2931, GBP USD exchange rate was 1.4206, GBP AUD exchange rate was 1.9023, GBP NZD exchange rate was 2.1399, GBP CAD exchange rate was 1.8821, and GBP CNY exchange rate was 9.2522.