Published: 14 Aug at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany, South Africa,
The Pound (GBP) has sunk to a disappointing four-month low point in the currency market following yesterdayâ€™s Bank of England (BoE) Inflation Report. The report proved anti-climactic after it proved another unanimous vote by the Monetary Policy Committee (MPC) to keep interest rates in the UK the same as they have been since the global financial crisis in 2008. Reuters commented: â€˜Governor Mark Carney indicated on Wednesday that wage developments would be key to the exact timing of a rate move as the BoE slashed its forecast for wage growth.â€™ With no hope for an imminent rate rise and a string of poor data, the Pound has plummeted, presently trading at 1.6674 versus the US Dollar (USD) and 1.2470 against the Euro (EUR).
The Euro (EUR) has seen a less than positive start to the day on Thursday with Gross Domestic Product (GDP) figures suggesting that Germany
â€”the Eurozoneâ€™s largest and most influential economyâ€”has contracted in the second quarter. Germany as such an influential Eurozone economy could be used as an indication of overall Eurozone health meaning Thursdayâ€™s publication may place pressure on the European central Bank (ECB) to put in place further and more elaborate policy measures, in an attempt to encourage the Eurozone recovery to accelerate. The Euro is presently trading against the US Dollar (USD) at 1.3359, and against the Pound (GBP) at 0.8012.
US Dollar (USD)
The US Dollar has been rising in popularity in the currency market of late, currently trading at 0.7485 against the Euro (EUR) in the currency market and against the Pound (GBP) at 0.5998. However the Federal Reserve is shrouded in speculation that they may be the first among the developed nations to raise interest rates early in 2015. However, some believe the Fed will continue to maintain their low rates longer than some economists are presently forecasting. Expert in the field Donald Williams stated: â€˜We are still far away from seeing higher interest rates.â€™
Canadian Dollar (CAD)
The Canadian Dollar (CAD) took a hit last week with the revelation that the Canadian economy only created 200 jobs in July, far short of the 24.0K economists were predicting. Now, Statistics Canada
will re-publish the data on Friday 15th, as an error was found among the figures. If the re-published data proves positive the â€˜Loonieâ€™ could benefit from such a change in the numbers, showing the Canadian economy is growing at a less lethargic pace than first thought. The Canadian Dollar is currently trading against its American Dollar (USD) counterpart at 0.9164.
Australian Dollar (AUD)
The Australian Dollar (AUD) saw a positive day on Thursday, creeping up past the 93 US cents threshold, climbing higher against the US Dollar (USD). The Westpac Consumer Confidence Index reached publication on Wednesday which proved higher than expected jumping to 98.5 index points in August, higher than the 94.9 attained in July. With no more data releases scheduled for the remainder of this week, the Aussie will be dependent on other movements in the currency market to determine any movement in the Australian Dollar exchange rate. The Australian Dollar is trading slightly below the 93 US cents benchmark against the US Dollar on Thursday at 0.9293.
The New Zealand Dollar (NZD) is presently trading at 0.8482 against the US Dollar (USD) and 0.9109 versus the Australian Dollar (AUD). New Zealand Retail Sales Excluding Inflation figures proved favourable yesterday attaining 1.2% in the second quarter, higher than the forecast 1.0%. With consumer spending escalating in New Zealand, the â€˜Kiwiâ€™ was able to climb higher against other majors. Expert in the field Neil Kelly commented: â€˜The motor-vehicle and parts retailing industry has driven this quarterâ€™s increase in both sales volumes and values.â€™
South African Rand (ZAR)
The Rand has experienced a rocky 2014 thus far, with further trials and tribulations expected for the latter half of the year. With poor growth in the South African economy and rising inflation levels, the Rand looks likely to face pressures in the near future. Wednesday saw South African retail sales flop at -0.4% in June, despite forecasts to attain 0.65%. Finance Minister Nhlanhla Nene commented: â€˜The growth in South Africa
is not sufficient.â€™ The US Dollar (USD) is currently trading against the Rand at 10.5838.
As of Thursday, 14th August 2014, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2486, GBP USD exchange rate was 1.6685, GBP AUD exchange rate was 1.7906, GBP NZD exchange rate was 1.9658, GBP CAD exchange rate was 1.8198, and GBP ZAR exchange rate was 17.6057.