Published: 20 Aug at 11 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, France, Germany, Russia, South Africa,
The Pound (GBP) has gained some strength in the currency market this week, following the remarks from Mark Carney on Sunday regarding interest rate hikes potentially occurring sooner rather than later. The Pound however, is the subject of discussion as debates regarding Scottish independence and currency heat up. Whilst some economists claim that Scotland couldnâ€™t maintain a strong economy with the use of Sterling, others are persistent that the Pound would remain in place in Scotland following an independent vote. Scottish politician Alexander Salmond stated: â€˜The key point weâ€™re making is arguing for the Sterling union, which we think is the best option for Scotland.â€™ The Pound is presently trading at 1.2507 versus the Euro.
The Euro (EUR) is currently placed in a precarious position in the currency market, as eyes turn to the European Central Bank (ECB) awaiting their actions to resolve such an unsteady Eurozone recovery. Tuesday has seen Russia preparing additional plans, lest the EU and US enforce further sanctions against them. Thursday will prove influential for the Euro by way of data publishing with the release of German, French and Eurozone Manufacturing, Composite and Services PMI figures. The present Euro to US Dollar exchange rate is reaching highs of 1.3365.
US Dollar (USD)
The US Dollar will see a great deal of fluctuation this week, with the publication of influential figures; the release of the Federal Reserveâ€™s meeting minutes; and the gathering of economic leaders such as Chairwoman for the Federal Reserve Janet Yellen and President for the European Central Bank (ECB) Mario Draghi, at Jackson Hole in Wyoming to discuss global economics. With the US economy poised to look for any key figures regarding interest rate hikes, the US Dollar is poised to remain strong. The USD to Pound (GBP) exchange rate is presently trading at 0.5986 in the currency market.
Canadian Dollar (CAD)
The Canadian Dollar (CAD) will see a quiet week by way of data releases, relying on Fridayâ€™s Consumer Price Index and Retail Sales figures to determine any fluctuation in the â€˜Loonieâ€™sâ€™ exchange rate. Furthermore, the Canadian Dollar has been holding steady against the US Dollar (USD) since the re-publication of Canadian employment figures on Friday, which proved highly favourable for the â€˜Loonieâ€™. The CAD to USD exchange rate is currently trading between the boundaries of 0.9171 and 0.9190.
Australian Dollar (AUD)
The Australian Dollar (AUD) is trading higher following the Australian meeting minutes released today, which have suggested that the Australian economy will continue to support a prolonged period of their current interest rates. An expert in the field Elias Haddad commented: â€˜We donâ€™t expect too much of change in tone from the RBA especially after the monetary policy report in todayâ€™s minutes.â€™ The Australian Dollar is trading up against the US Dollar (USD) at 0.9328.
The New Zealand Dollar (NZD) has fallen on Tuesday in the currency market as the Reserve Bank of New Zealand (RBNZ) has trimmed its inflation rate expectations. The former Reserve Bank of New Zealand Two-Year Inflation Expectation resided at 2.36%, whereas Tuesday has seen this figure revised down to 2.23%. Furthermore, milk prices fell again on Monday, causing further weakness for the commodity currency with more potential cuts to dairy produce expected. The New Zealand Dollar is trading at 0.8435 against the US Dollar (USD)
South African Rand (ZAR)
The US Dollar (USD) is currently trading up against the South African Rand (ZAR) at 10.6296 with strength lending to the â€˜Buckâ€™ in the currency market of late. It appears likely that the Rand will continue to soften against other majors, notably the US Dollar, as the currency markets await influential meeting minutes and discussions by central bank leaders this week. Wednesday however will see the publication of South African Inflation Rate figures, presently expected to reach 6.08% in July.
As of Wednesday, 20th August 2014, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2518, GBP USD exchange rate was 1.6598, GBP AUD exchange rate was 1.7875, GBP NZD exchange rate was 1.9823, GBP CAD exchange rate was 1.8203, GBP RUB exchange rate was 60.1986, and GBP ZAR exchange rate was 17.8181.