Published: 18 Jul at 11 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, South Africa, Switzerland,
The Pound (GBP) has firmed recently against all major currencies, however the discussion over how much more it can feasibly gain against the US Dollar (USD) is in debate on Friday; instead, economists are speculating that Sterling will be gaining vastly against the Euro (EUR). A representative for the Bank of America, MacNeil Curry, stated: â€˜If you look at Euro-Sterling, itâ€™s a pretty textbook downtrend.â€™ The Pound is currently trading up against the US Dollar at 1.7106.
Friday will see a fairly quiet day for the Euro (EUR), with only Eurozone Current Account data produced. The Euro however looks to be set for a decline against the Pound (GBP) according to economists. An expert in the field, Steve Barrow, stated: â€˜The decline that weâ€™ve seen in Euro-Sterling since [Governor for the Bank of England, Mark] Carney made his comments about a potential rate hike have probably been a little more significant than weâ€™ve seen in the past, without any consolidation or correction.â€™ The Euro is currently trading down against the Pound at 0.7903.
US Dollar (USD)
The US central bank, the Federal Reserve, has recently come under fire regarding the timeframe of interest rate hikes in the US; however with Chairwoman for the Federal Reserve, Janet Yellen, refusing to give a formulaic approach to such a sensitive issue, there has been further speculation amongst economists. Bloomberg observed: â€˜The Federal Reserve may have to raise rates more quickly than planned as unemployment falls and inflation quickens, said James Bullard, President of the St. Louis Fed.â€™
Canadian Dollar (CAD)
The Canadian Dollar (CAD) will see a significant day on Friday, as a wealth of Consumer Price Index data is released. The Canadian Dollar has been trading in and around the 93 cents region against the US Dollar (USD) this week following the Bank of Canada
â€™s decision to let the interest rate stagnate further at 1.0%, where itâ€™s been for the last four years. The â€˜Loonieâ€™ is presently trending at 0.9305 against the â€˜Buckâ€™.
Australian Dollar (AUD)
The Australian Dollar (AUD) is trading just below 94 US cents this week, despite recent jawboning attempts by the Reserve Bank of Australia
(RBA) to bring the currency down. Recent political events, such as Thursdayâ€™s downing of a Malaysian civilian plane, causes commodity currencies such as the Australian and New Zealand
(NZD) Dollars to become volatile. The â€˜Aussieâ€™ saw a dip initially after the event, as investors sought safe haven currencies such as the US Dollar (USD). The Australian Dollar is currently trading up against the â€˜Greenbackâ€™ at 0.9385.
New Zealand Dollar (NZD)
The New Zealand Dollar (NZD) had a noticeable decline against other majors this week, as commodity prices dropped. However, with global conflict escalating after the civilian Malaysian plane was shot down, investors are moving towards other safe haven currencies such as the US Dollar or the Swiss Franc (CHF). An expert in the field for the ANZ Bank New Zealand stated: â€˜You would expect the â€˜Kiwiâ€™ to remain under pressure.â€™ However next week will see a statement from the Reserve Bank of New Zealand regarding the interest rate decision, which could prove influential for the â€˜Kiwiâ€™. The New Zealand Dollar is currently trading up at 0.8677.
South African Rand (ZAR)
The South African Rand (ZAR) is subject to constant volatility amid the NUMSA (National Union of Metalworkers of South Africa
) strike action, following an unstable five months from the platinum minersâ€™ strike. The strike has been speculated to end soon, as discussions between employers and employees remain frequent. As Toyota and Nissan both close factories in South Africa, metal builders are heavily affected. A representative for the Master Builders South Africa (MBSA), Tumi Dlamini, has commented: â€˜Work has slowed down substantially on building sites as MBSA members are deprived of essential building components, such as steel plates, framework, pipes, windows and doors, or any other metal component produced by factories affected by the NUMSA strike.â€™ Furthermore, with the current economy faltering as production is halted within South Africa, talks of recession are circulating. The US Dollar (USD) is currently trading against the South African Rand at 10.6895.
As of Friday, 18th July 2014, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2633, GBP USD exchange rate was 1.7086, GBP AUD exchange rate was 1.8188, GBP NZD exchange rate was 1.9655, GBP CAD exchange rate was 1.8339, GBP ZAR exchange rate was 18.1897, and GBP CHF exchange rate was 1.5352.