Published: 16 Sep at 7 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Australia, New Zealand, USA, Germany,
Pound Sterling GBP
With the Scottish referendum fast approaching and the UK’s Bank of England meeting minutes due for publication tomorrow, the Pound was under pressure for much of the European session. The GBP/USD and GBP/EUR exchange rates also declined in response to a slowing in the rate of UK Consumer Price Inflation. With the pace of inflation falling even further below the BoE’s 2% target, interest rate hikes are starting to look dim and distant. It would take a strong improvement in average UK earnings for the Pound to record notable gains tomorrow.
US Dollar USD
After fluctuating yesterday in response to a mixed bag of US economic reports, the ‘Greenback’ continued to enjoy a bullish relationship with the majority of its currency counterparts as a result of speculation that the Federal Reserve will adopt a hawkish stance on interest rates tomorrow. A lack of notable US news restrained US Dollar movement on Tuesday.
Although the Eurozone released very disappointing sentiment surveys for both the currency bloc as a whole and Germany
, the Euro managed to hold its own against both the US Dollar and Pound. The German ZEW Economic Sentiment and Current Situation surveys declined for a ninth consecutive month. The EUR/GBP exchange rate hit a high of 0.8010.
Australian Dollar AUD
Jawboning comments from Reserve Bank of Australia
official Chris Kent saw the Australian Dollar post initial losses during the Australasian session. However, Kent also implied that business investment in Australia is improving and could help bolster the nation’s economy. The ‘Aussie’ recovered losses against the Pound over the course of the European session as UK inflation, employment and interest rate concerns weighed on the British asset.
With economic reports for New Zealand lacking, movement in the GBP/NZD pairing has been driven by UK developments. Although the UK’s Consumer Price Index declined in August, causing the Pound to post initial losses, the GBP/NZD pairing clawed back lost ground to trade close to the day’s opening levels.
As of Tuesday, 16th September 2014, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2549, GBP USD exchange rate was 1.6251, GBP AUD exchange rate was 1.7905, and GBP NZD exchange rate was 1.9842.