Published: 10 Aug at 3 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany,
The Pound (GBP) was met by volatility on Thursday as the UK released its latest trade balance figures.
According to the ONS the UK’s trade deficit jumped from a downwardly revised £2.52bn to £4.56bn in June, reaching a new nine-month high as imports continued to outstrip exports.
It wasn’t all doom and gloom for Sterling today however as Britain’s latest Industrial Production data saw factory output rally from -0.2% to 0.3% at the end of the second quarter, allaying fears that output would have declined for the entire three-month period.
After initially strengthening this morning as markets moved towards safer assets in the wake of escalating tensions on the Korean peninsula, the Pound Euro (GBP EUR) exchange rate has begun to cede ground again this afternoon following a gloomy forecast for the UK’s GDP.
The latest UK growth estimate from NIERSR suggests that the UK economic only grew at 0.2% in the three months to July, which is down from the 0.3% prediction for the second quarter and would suggest that Britain’s economy slowed again last month.
Meanwhile the Euro may see further gains tomorrow as economists forecast that Germany
’s inflation rate will have risen from 1.6% to 1.7% in July.
Sterling remained subdued against the US Dollar (USD) today as the UK’s lacklustre trade figures capped the pairing’s attempts to advance.
Meanwhile the ‘Greenback’ was strengthened today as investors flocked towards ‘safe haven assets’ as North Korean tensions continued to run hot as despite American’s role in the spat the US Dollar remained a safe beat for traders.
However USD investors were left a little disappointed by the drop in US producer prices in the afternoon as the decline makes a Federal Reserve rate hike even more unlikely in the next few months.
After trending higher this morning the Pound Canadian Dollar (GBP CAD) exchange rate dropped off sharply on Thursday afternoon as oil prices rose following OPEC’s more to raise its forecast for oil demand growth, helping Brent crude advanced another 0.9% on top of its gains on Wednesday.
Sterling fluctuated against the Australian Dollar (AUD) throughout the Asian and European session on Thursday as Pyongyang’s threat to launch a number of missiles towards the US pacific territory of Guam caused increased volatility in currency markets.
The Pound New Zealand Dollar (GBP NZD) exchange rate race around two cents higher today following the Reserve Bank of New Zealand decision to leave interest rates on hold, while also signalling that its outlook was likely to remain neutral for the next couple of years.
As of Thursday, 10th August 2017, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.1028, GBP USD exchange rate was 1.2975, GBP AUD exchange rate was 1.6499, GBP NZD exchange rate was 1.786, and GBP CAD exchange rate was 1.653.