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Sterling Steadies after Week of Gains, Euro Halts Losses on Greek Optimism and US Dollar Holding Steady ahead of Data

Published: 22 Jun at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Greece,

Pound Sterling (GBP)
Thanks to comparatively positive domestic data results over the course of last week, the Pound advanced versus the majority of its most traded peers. With ecostats pointing towards a quarter of better-than-expected growth, futures traders have brought forward bets as to the timing of a Bank of England (BoE) rate hike. However, with a sparse economic docket over the coming week, and with a complete absence of domestic data on Monday, the Pound is likely to see movement as a response to fluctuations in the wider currency market.

Euro (EUR)
With optimism fading that Greece will secure bailout funds before the credit line runs dry, and the situation exacerbated by Greek Prime Minister Alexis Tsipras’ refusal to bend on electoral red-lines, the shared currency slumped versus its rivals last week. Monday has seen the shared currency recover some of its losses, however, as Eurozone officials prepare for an emergency summit to discuss Greece. Trader optimism was given a boost after European Commission President Jean-Claude Juncker stated that the 11th-hour proposal submitted by Athens offered a ‘good base for progress’.

US Dollar (USD)
The US Dollar was trading bearishly over the past week after a dovish Federal Reserve caused rate hawks to delay bets on a benchmark interest rate hike. With that being said, the depreciation was somewhat contained thanks to demand for safe-haven assets as the geopolitical situation in Greece rapidly deteriorated. The US asset edged higher on Monday ahead of the Chicago Fed National Activity Index and Existing Home Sales data.

Australian Dollar (AUD)
With geopolitical tensions dominating trader focus, the Australian Dollar declined versus its peers last week. The downtrend was somewhat slowed, however, thanks to a bearish US Dollar. The Oceanic currency is holding a relatively weak position on Monday amid speculation that the Reserve Bank of Australia (RBA) will be forced to cut the cash rate in order to devalue the ‘Aussie’ (AUD) despite the potential to stoke the Sydney housing bubble.

New Zealand Dollar (NZD)
The New Zealand Dollar softened across the board in response to a surprise move by the Reserve Bank of New Zealand (RBA) to cut the benchmark interest rate. Damp market sentiment also aided the ‘Kiwi’ (NZD) depreciation. Monday has seen the South Pacific asset trading lower after Credit Card Spending declined from the figure recorded in May of last year.

Canadian Dollar (CAD)
Although domestic data printed relatively positively last week, the Canadian Dollar was trending lower versus most of its rivals. Damp market sentiment and bearish crude oil prices weighed on demand for the Canadian asset. Monday has seen the ‘Loonie’ (CAD) edge higher thanks to rising oil prices.
As of Monday, 22nd June 2015, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.3953, GBP USD exchange rate was 1.5825, GBP AUD exchange rate was 2.0483, GBP NZD exchange rate was 2.3053, and GBP CAD exchange rate was 1.9488.
Laura Parsons About Author: (359 Posts)Laura works in the financial sector as a currency analyst, studying the latest global economic developments and assessing their impact on the foreign exchange market. Laura uses her currency knowledge to write articles focussing on market movements and trends for several independent financial websites.

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