Published: 13 Mar at 11 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada,
The Pound fell back to trending in the 1.39 region against the Euro on Friday as the UKâ€™s Construction Output report disappointed expectations. Output was shown to have fallen by -2.1% on the month rather than increasing the 1.3% expected. This data, in conjunction with negatively revised BoE interest rate hike expectations, could leave the Pound trading in a softer position at the close of the week.
Bets that the Euroâ€™s recent decline was overdone have helped the common currency stage a rebound over the second half of the week. The Euro also derived support from on or better-than-forecast domestic data and a calming of Grexit fears.
On Thursday the US Dollar tumbled as investors speculated that the currencyâ€™s recent run of gains had been excessive. A disappointing US retail sales report contributed to the â€˜Greenbackâ€™s downtrend. However, the USD/GBP pairing remains buoyant and todayâ€™s US University of Michigan Confidence gauge could see the US Dollar record additional gains.
The â€˜Aussieâ€™ fell back bellow 77 cents against the US Dollar after gaining earlier in the week off the back of a better-than-expected Australian employment report. Next week the RBA is set to publish the minutes from its latest policy meeting. The minutes could spark volatility if they indicate that the central bank is considering cutting interest rates in the near future.
Despite the fact that New Zealandâ€™s Performance of Manufacturing Index moved further above the 50 mark separating growth from contraction in February, the New Zealand Dollar gave up much of its previous gains against the US Dollar on Friday. Over the weekend the domestic Performance of Services index could be a cause of â€˜Kiwiâ€™ movement.
In the hours ahead the â€˜Loonieâ€™ is likely to experience volatility as a result of Canada
â€™s employment report for February. An unexpected increase in positions would give the Canadian Dollar a boost.
As of Friday, 13th March 2015, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.4049, GBP USD exchange rate was 1.4745, GBP AUD exchange rate was 1.9306, GBP NZD exchange rate was 2.0085, and GBP CAD exchange rate was 1.8852.