Published: 16 Jan at 2 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Switzerland,
The Pound maintained a bullish relationship with the Euro on Friday as demand for the common currency remained weak in the face of the Swiss National Bankâ€™s controversial decision to remove its currency cap. Sterling could strengthen next week if the UKâ€™s employment report prints positively.
Before the UKâ€™s inflation and confidence reports were published the US Dollar was trading in a narrow range against peers like the Pound and Australian Dollar. If the CPI data shows a slowing in consumer price gains the â€˜Greenbackâ€™ could fall.
The Euro displayed little reaction to the Eurozoneâ€™s final inflation data for December. The report showed that the core measure came in at 0.7% on an annual basis, and not the 0.8% originally estimated, but that the non-core index registered at -0.1% - an improvement on the previous projection of -0.2%. Euro demand remained weak following yesterdayâ€™s shocking developments in the currency market.
Rising copper prices boosted the Australian Dollar against several of its peers on Friday. Next week Chinese data could dictate the direction taken by the â€˜Aussieâ€™. If the Asian nationâ€™s manufacturing PMI shows improvement, it could trigger gains. Commodity prices will also continue to have an impact.
Dairy price concerns and domestic drought fears had a negative effect on the New Zealand Dollar at the close of the week. The reports with the most potential to cause â€˜Kiwiâ€™ volatility next week include New Zealandâ€™s inflation numbers and Consumer Confidence figures.
The strain of low oil prices was telling on the Canadian Dollar before the weekend and the commodity-currency was trending in a weaker position against most of its rivals. The Bank of Canada
â€™s interest rate decision is due to take place next week. Given recent developments, itâ€™s likely the central bank will adopt a dovish tone. If that proves to be the case, additional â€˜Loonieâ€™ losses can be expected.
As of Friday, 16th January 2015, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.3094, GBP USD exchange rate was 1.5146, GBP AUD exchange rate was 1.8422, GBP NZD exchange rate was 1.9444, GBP CAD exchange rate was 1.8151, GBP CNY exchange rate was 9.401, and GBP CHF exchange rate was 1.3021.