Published: 21 Jan at 1 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada,
The UKâ€™s employment figures for the three months through November might have impressed, in the main, but the Bank of Englandâ€™s dovish meeting minutes put Sterling under pressure and the British asset fell against almost all of its rivals. While the Pound went on to moderate its losses, the currency is likely to continue trending lower for the rest of the European session.
Prior to the release of the US housing starts and building permits reports, the US Dollar posted a gain against the struggling Pound but edged slightly lower against the Euro. If todayâ€™s US data shows the improvement expected, the US Dollar could strengthen over the course of local trading.
Economic reports from the Eurozone were in short supply on Wednesday but the Euro was still able to advance modestly on the Pound and US Dollar ahead of the European Central Bankâ€™s policy decision. Extensive common currency movement can be expected tomorrow as the central bank unveils its hotly-anticipated stimulus measures.
An improvement in Australia
â€™s Westpac Consumer Confidence gauge gave the â€˜Aussieâ€™ a boost during the local session, although commodity price fluctuations and global growth concerns did limit gains. The Australian Dollar could be responsive to Australiaâ€™s Consumer Inflation Expectation report â€“ due for release at 00:00 GMT.
A softer-than-expected Consumer Price Index for New Zealand pushed the â€˜Kiwiâ€™ lower overnight. The report increases the odds of the Reserve Bank of New Zealand leaving interest rates on hold for the foreseeable future and undermined demand for the South Pacific asset.
Given the recent slide in oil prices and the impact of global pressures, some economists are anticipating an interest rate cut from the Bank of Canada
. Consequently, a neutral decision from the central bank would be â€˜Loonieâ€™ beneficial. If borrowing costs are cut however, the Canadian Dollar could plummet against its peers.
As of Wednesday, 21st January 2015, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.3041, GBP USD exchange rate was 1.5143, GBP AUD exchange rate was 1.8691, GBP NZD exchange rate was 2.0001, and GBP CAD exchange rate was 1.8693.