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Fri 19 Jul 2024 13:21GMT

BoE Inflation Report Causes GBP Drop, EUR Weaker, CAD Steady

Published: 12 Nov at 12 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany,

Pound Sterling
In a dramatic day of movement for the Pound, the British asset rose in response to an increase in average UK earnings and plummeted in reaction to the Bank of England’s dovish inflation report. The Pound lost over 0.4% against the Euro and 0.5% against the US Dollar.

US Dollar
A lack of economic reports for the US has restrained US Dollar movement for the first half of the week. Today the ‘Greenback’ may experience modest movement as the US releases its Mortgage Applications data and Wholesale Inventories figures. Investors will also be looking ahead to Thursday’s US initial jobless/continuing claims figures and Friday’s Advance Retail Sales report.

A decline in Germany’s Wholesale Price Index and a smaller-than-anticipated rebound in Eurozone industrial production left the common currency trending in a weaker position against several of its rivals. Expectations that this week’s GDP reports for the Eurozone will show stagnant growth are also weighing on the Euro.

Australian Dollar
With Australia’s Westpac Consumer Confidence gauge showing an improvement in sentiment, the Australian Dollar was able to rally against several of its rivals during the local session. The ‘Aussie’ extended gains against the Pound after the Bank of England delivered its quarterly inflation report.

New Zealand Dollar
The New Zealand Dollar advanced against the majority of its currency counterparts on Wednesday as investors snapped up the ‘Kiwi’ in the wake of the Reserve Bank of New Zealand’s Financial Stability Report. The central bank hinted that it will resume its rate hiking cycle in the near future. The comments led industry experts to bet that the next increase in borrowing costs will occur early next year.

Canadian Dollar
The Canadian Dollar gained on the Pound and Euro on Wednesday as both European assets weakened on the back of disappointing domestic reports. The ‘Loonie’ was little changed against the US Dollar. Movement in the commodity-driven currency is likely to be limited ahead of the publication of Canada’s New Housing Price Index on Thursday.

As of Wednesday, 12th November 2014, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.2687, GBP USD exchange rate was 1.5769, GBP AUD exchange rate was 1.8106, GBP NZD exchange rate was 2.0056, and GBP CAD exchange rate was 1.7855.
Laura Parsons About Author: (360 Posts)Laura works in the financial sector as a currency analyst, studying the latest global economic developments and assessing their impact on the foreign exchange market. Laura uses her currency knowledge to write articles focussing on market movements and trends for several independent financial websites.

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