SendMoney.org.uk

Compare exchange rates, send money abroad and online

Mon 1 Jun 2020 09:20GMT

Pound Sterling Fluctuates against Currency Peers after Bank of England (BoE) Interest Rate Decision

Published: 22 Mar at 5 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada,

Pound Sterling (GBP)

The Pound made gains against both the Euro and US Dollar today, but these temporary advances have since given way to tight trading against the Euro and a loss against the US Dollar.

The headline news has been that while the Bank of England (BoE) hasn’t hiked UK interest rates, it could still do so as soon as May.

Economists remain divided about precisely when the BoE could increase interest rates this year, but the general outlook is that there will be some form of hike before 2019.

The next UK data to watch out for will be GDP growth rate stats on 29th March, which could weaken the Pound if they slow as expected.

Euro (EUR)

Thursday afternoon has seen the Euro decline against both the Pound and US Dollar, despite news of a potential EU exemption from US metal tariffs.

Earlier Eurozone data was disappointing, with PMI readings showing greater-than-expected slowdowns for the March estimates.

If EU exemptions from US metal tariffs are confirmed before the weekend, the Euro could recover against the Pound, the US Dollar and its other regular peers.

US Dollar (USD)

Despite mixed movement earlier in the day, the US Dollar has most recently firmed against the Pound and Euro in addition to advancing against regular peers.

Unlike the BoE, the US Federal Reserve has recently raised interest rates, from 1.5% to 1.75%.

This was the predicted outcome, but has still pushed the US Dollar’s value higher.

The one setback is that there may only be three US interest rate hikes in 2018 instead of the expected four, but this downside hasn’t caused prolonged damage to the USD.

The US Dollar may rise further on Friday afternoon, when durable goods orders for February will be announced.

During the month in February, expectations are for growth from -3.7% to 1.5%.

Australian Dollar (AUD)

Australian Dollar losses have been widespread on 22nd March, with the strong US Dollar reducing demand for the more risk-based AUD.

The situation hasn’t been helped by Australian jobs data, which has shown an unexpected rise in the unemployment rate for February.

There is no notable AU data out until the start of April, so until then the Australian Dollar could remain vulnerable to any US Dollar fluctuations.

New Zealand Dollar (NZD)

Unlike its antipodean neighbour, the New Zealand Dollar has risen against most currency rivals today, with the exception of tight trading against the US Dollar.

The Reserve Bank of New Zealand (RBNZ) has left interest rates at 1.75%, but a weak Australian Dollar has raised demand for the NZD during the day.

The New Zealand Dollar could appreciate on the morning of 23rd March, if the ANZ Roy Morgan consumer confidence index shows growth as forecast.

Canadian Dollar (CAD)

The Canadian Dollar has largely appreciated against its regular peers on 22nd March, excepting the US Dollar and the New Zealand Dollar.

CAD traders have responded optimistically to the news that Canada will be excluded from US metal tariffs, ahead of the official implementation on 23rd March.

Friday will bring Canadian retail sales and inflation data for January and February respectively.

Sales and inflation growth has been forecast, which could push the Canadian Dollar higher in value before the end of the week.
As of Thursday, 22nd March 2018, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1448, GBP USD exchange rate was 1.4111, GBP AUD exchange rate was 1.833, GBP NZD exchange rate was 1.9547, and GBP CAD exchange rate was 1.824.
Patrick James About Author: (289 Posts)Patrick completed his economics degree just as the global financial crisis struck in 2008. In the intervening years Patrick has made his mark, climbing to a prominent position within a large financial services provider. As part of his role Patrick uses his expertise to advise companies of the best ways to safeguard against currency risk.

Live Exchange Rates