Published: 17 Nov at 11 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany,
Yesterdayâ€™s dovish quarterly inflation report from the Bank of England (BoE) left the Pound trending in a weaker position against all of its major currency counterparts. The GBP/USD exchange rate brushed a 14-month low and the GBP/EUR exchange rate fell below 1.27. A lack of influential UK reports limited Pound movement on Thursday but the currency could fluctuate tomorrow as UK Construction Output data is published.
The US Dollar edged lower against rivals like the Euro as a high-profile Federal Reserve official asserted that the first increase in US borrowing costs should take place either in the middle of next year or in the latter half. However, the â€˜Greenbackâ€™ could recoup losses before the close of the local session if this weekâ€™s US initial jobless and continuing claims reports impress.
The Euro was enjoying a comparatively bullish relationship with both the Pound and US Dollar on Wednesday as Germany
â€™s Consumer Price Index for October was left unrevised. Common currency strength persisted even after the publication of the European Central Bankâ€™s monthly report. The central bank asserted that it envisages inflation remaining at its currently low levels in the months ahead. Tomorrowâ€™s GDP reports for the Eurozone and its largest economies are likely to spark further Euro movement.
Although the Australian Dollar initially weakened in response to comments issued by Reserve Bank of Australia
Deputy Governor Christopher Kent regarding intervention in the FX market, the South Pacific currency swiftly bounced back. With a Fed official pushing back US interest rate hike expectations, higher-risk currencies like the Australian Dollar were able to strengthen.
Overnight the New Zealand Dollar rallied against its most traded currency counterparts in response to encouraging domestic data. New Zealandâ€™s Business Performance of Manufacturing Index climbed from a positively revised 58.5 to 59.3 in October and Food Prices stagnated on the month following Septemberâ€™s -0.8% decline. It wasnâ€™t all good news for New Zealand however as the nationâ€™s Consumer Confidence Index fell by -1.3% on the month in November, taking the measure down from 123.4 to 121.8.
The Canadian Dollar was trading in a narrow range against the majority of its currency counterparts prior to the release of Canada
â€™s New Housing Price Index. The measure is expected to post a month-on-month increase of 0.2% in September and a year-on-year gain of 1.7%. Positive figures could lend the â€˜Loonieâ€™ some support.
As of Monday, 17th November 2014, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2562, GBP USD exchange rate was 1.5637, GBP AUD exchange rate was 1.7958, GBP NZD exchange rate was 1.9731, and GBP CAD exchange rate was 1.7666.