Published: 9 Oct at 1 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
Before the Bank of England delivered its interest rate decision, the Pound was able to advance modestly on a broadly softening US Dollar. Sterling also climbed against the Euro after Germany
â€™s trade figures sparked fresh growth concerns. As expected by economists, the BoE left the key interest rate at 0.5%. Underperforming UK data and concerns that the Eurozone (a major UK trade partner) is on the verge of recession are likely to prevent the BoE from adjusting rates for the foreseeable future. Tomorrowâ€™s UK trade and construction output stats could have an impact on the Pound.
US Dollar USD
In the immediate aftermath of the publication of minutes from the latest Federal Open Market Committee meeting, the US Dollar plummeted. The North American currency lost ground against most of its peers as the minutes indicated that the Federal Reserve might not be as close to increasing interest rates as predicted. The FOMC also stressed that the strength of the US Dollar would be detrimental to domestic growth.
Over the course of the European session the Euro softened against almost all of its most traded currency counterparts. The Euro faltered after Germanyâ€™s trade data showed a narrowing in the nationâ€™s surplus and a sharp drop in exports. The report added to fears that the Eurozoneâ€™s largest economy could be on the brink of recession and the Euro weakened accordingly.
Australian Dollar AUD
Although the Australian Unemployment rate climbed to 6.1% in September as the nation unexpectedly lost 29,700 positions, the â€˜Aussieâ€™ climbed against the US Dollar and closed out the Australasian session trending higher against the Pound and Euro. Australia
â€™s employment figures had little impact on the Australian Dollarâ€™s performance as investors instead focused on the news that US interest rates might not be taking place as soon as many had expected.
A report may have shown that New Zealandâ€™s Card Spending/Retail Card Spending figures declined unexpectedly in September, but the New Zealand Dollar was still able to enjoy a rally against most of its currency counterparts. The â€˜Kiwiâ€™ was bolstered as investors turned to higher-risk assets following the publication of a dovish set of Federal Open Market Committee meeting minutes.
Canadian Dollar CAD
Another steep decline in the price of crude oil, Canada
â€™s main export, pushed the Canadian Dollar lower against most of its rivals on Thursday. The currency was also feeling the pressure as a result of this weekâ€™s disappointing Canadian housing reports. If todayâ€™s domestic New Housing Price report also falls short the â€˜Loonieâ€™ could ease lower before the close of the local session.
As of Thursday, 9th October 2014, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2708, GBP USD exchange rate was 1.612, GBP AUD exchange rate was 1.8393, GBP NZD exchange rate was 2.0513, and GBP CAD exchange rate was 1.8028.