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Fri 21 Feb 2020 09:26GMT

GBP Gains after UK Employment Data, EUR Struggles, CAD Declines on Oil Woes

Published: 15 Oct at 1 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Germany,

Pound Sterling GBP
Although Tuesday’s UK inflation report caused widespread Pound declines, the British currency was able to stage something of a rebound on Wednesday as the domestic unemployment rate fell by more than forecast. The jobless rate dipped to 6.0% instead of falling to 6.1% as forecast. However, bets that the UK’s soft CPI print will prevent the Bank of England increasing interest rates in the spring of next year tempered Pound Sterling gains.

US Dollar USD
On Wednesday the US Dollar spent much of the European session trending in a stronger position against the Euro. While the safe-haven asset did lose ground against the Pound after the UK’s employment figures were released the ‘Greenback’ could rally if today’s US Advance Retail Sales report defies expectations and shows an increase rather than the -0.1% monthly decline forecast.

Euro EUR
Yesterday’s concerning ZEW economic sentiment surveys for Germany and the Eurozone as a whole put the Euro under pressure. As it is becoming increasingly likely that Germany will enter a technical recession before the end of the year, the common currency may continue trending lower in the weeks ahead. Further Euro fluctuations could be initiated by a speech to be given by ECB President Mario Draghi in Frankfurt.

Australian Dollar AUD
With Australia’s Westpac Consumer Confidence report showing improvement and investors confident that the People’s Bank of China will introduce additional stimulus measures to bolster the world’s second largest economy, the Australian Dollar was bullish against several of its rivals overnight. The South Pacific currency was able to hold its own against the Pound even as the UK released better-than-forecast employment figures.

New Zealand Dollar NZD
Concerns that dairy prices could fall even further left the New Zealand Dollar weaker against peers like the Australian Dollar, US Dollar and Pound at the close of Australasian trading. Today’s New Zealand Performance of Manufacturing report could be the cause of NZD volatility.

Canadian Dollar CAD
Widespread Canadian Dollar losses were recorded overnight as the slump in oil prices (Canada’s main export) caused concern for the nation’s economic outlook. Canada is set to publish its Existing Home Sales index later today. If the report registers improvement it could help the ‘Loonie’ recoup some of its losses.
As of Wednesday, 15th October 2014, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.2478, GBP USD exchange rate was 1.6002, GBP AUD exchange rate was 1.8181, GBP NZD exchange rate was 2.0073, GBP CAD exchange rate was 1.8028, and GBP CNY exchange rate was 9.8029.
Dominic Lee About Author: (393 Posts)With over ten years experience as an economist – including four years spent as a chief economist with a major currency broker – Dominic has acquired a wealth of knowledge which he uses to forecast market movements. Dominic now works as an independent business advisor and writes for several financial publications.

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