Published: 13 Feb at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany,
The Pound Sterling weakened broadly against the Euro after data showed that the German economy expanded far stronger than forecast. Against the US Dollar, the Pound advanced beyond the 1.53 level as US data released in the previous session came in below expectations. Looking ahead to next week the Pound will experience volatility because of the latest UK inflation data. Also of interest will be the release of the Bank of Englandâ€™s monetary policy meeting and unemployment data.
The US Dollar softened against the majority of its most traded peers as domestic retail sales and jobless claims data came in worse than forecast. The fall in retail sales was particularly worrying as consumer spending makes up around 70% of the nationâ€™s economy. The â€˜Greenbackâ€™ could claw back some ground later in the session if the latest Michigan Consumer Sentiment data comes in better than forecast. The US Dollar is expected to remain under pressure at the start of next week due to US markets being closed for the Presidentâ€™s Day National holiday.
The Euro advanced strongly against the Pound and other major peers after it received a boost from far stronger than forecast fourth-quarter German GDP data. The data showed that Europeâ€™s largest economy grew by 0.7% in the final quarter of last year, beating expectations for an increase of 0.3% and was a strong jump from the third quarter figure of 0.1%.
The â€˜Aussieâ€™ briefly advanced against its major peers before going back onto the retreat after central bank governor Glenn Stevens suggested that the government should increase spending and as it took advantage of the softer US Dollar. The currency then retreated as economists analysed the rest of Stevensâ€™s speech, which suggested that the â€˜Aussieâ€™ remains too high.
The New Zealand Dollar softened as it followed its Australian relation lower. Against the Australian Dollar, the â€˜Kiwiâ€™ briefly touched a record high as it took advantage of the preceding sessionâ€™s softer â€˜Aussieâ€™ labour data.
The â€˜Loonieâ€™ advanced against many of its peers as oil prices rallied to $51 per barrel and as the currency took advantage of the softer than expected economic data out of the USA. Oil prices rose because of data showing that industry-spending fell and as the US Dollar softened on the back of weaker than expected US labour data.
As of Friday, 13th February 2015, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.3513, GBP USD exchange rate was 1.5395, GBP AUD exchange rate was 1.9864, GBP NZD exchange rate was 2.0646, and GBP CAD exchange rate was 1.9168.