Published: 19 Jan at 5 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)
Pound movement has been mixed this week so far. While Sterling’s outlook is gradually improving on coronavirus recovery hopes, none of this week’s news has been optimistic enough to give the Pound the leg-up it needs to rally.
UK inflation rate data from December will be published tomorrow. It is unlikely to influence the Pound though, and Sterling movement will remain more focused on UK coronavirus developments.
The Euro was one of today’s more appealing major currencies. ZEW’s German and Eurozone economic sentiment stats beat forecasts, boosting sentiment around the Eurozone’s resilience to the coronavirus pandemic.
Eurozone inflation rate data is due to be published tomorrow. The data will likely be overshadowed though, and the Euro will be driven more by movement in rivals like the Pound and US Dollar.
US Dollar (USD)
Demand for the US Dollar was a little softer today. Anticipation for more fiscal spending from the incoming Joe Biden administration made investors hesitant to keep buying the US Dollar as a safe haven currency.
The US Dollar’s safe haven appeal could continue to weaken as well. If upcoming data impresses and there are signs of improvement in the global coronavirus outlook, the US Dollar could weaken further.
Australian Dollar (AUD)
GBP/AUD struggled to advance today, as the Australian Dollar remained one of the more appealing major currencies on market. Higher equity and commodity prices, as well as strong Chinese data, helped give the ‘Aussie’ a boost.
Australian consumer confidence data for January will be published tomorrow. If the data beats expectations, the Australian Dollar’s broad appeal and resilience will only continue.
Demand for the New Zealand Dollar was mixed today. Investors were hesitant to take risks and the New Zealand Dollar was not as appealing as its rival the ‘Aussie’.
The New Zealand Dollar will continue to be driven largely by shifts in market sentiment and strength in rival currencies.
Canadian Dollar (CAD)
Prices in oil, Canada
’s biggest export, continued to rise despite worsening price forecasts and demand concerns. The Canadian Dollar’s appeal was limited despite stronger oil though, as it was weighed by weakness in the US Dollar.
Tomorrow’s Bank of Canada (BoC) policy decision could be key for the Canadian Dollar’s movement this week. If the bank takes a more dovish tone, the Canadian Dollar could see more notable losses.
As of Tuesday, 19th January 2021, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.124, GBP USD exchange rate was 1.3644, GBP AUD exchange rate was 1.7692, GBP NZD exchange rate was 1.9141, GBP CAD exchange rate was 1.7359, and GBP CNY exchange rate was 8.8397.