Published: 23 Mar at 3 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany,
Coronavirus Pandemic Sends Pound (GBP) Lower
The Pound (GBP) suffered losses on Monday as investors flocked back to the safe-haven US Dollar (USD) this morning.
Sterling was also hit as investors worried about the countryâ€™s approach to dealing with the coronavirus pandemic. Added to this, Britainâ€™s large current account deficit also made the currency vulnerable.
Looking ahead, Sterling could suffer some losses following the release of UK flash PMI data. If the services sector contracts at a faster rate than expected in March, it will weigh on GBP.
Pound Euro (GBP/EUR) Exchange Rate Falls despite German Recession Warnings
The Pound Euro (GBP/EUR) exchange rate slumped today, despite Germany
â€™s Bundesbank warning of a deep recession in the blocâ€™s largest economy.
In its monthly report, the German central bank said a recession is not inevitable, although German public finances were well positioned to cope with this.
Looking ahead, the single currency could suffer losses following the release of flash German PMI data. If both the manufacturing and services sectors slump below 50, the Euro will edge lower.
Pound US Dollar (GBP/USD) Exchange Rate Heads Back Towards 35-Year Lows
The Pound (GBP) fell against the US Dollar (USD) at the start of the week, heading back towards the 35-year lows the pairing plummeted to last week.
However, in the afternoon the Pound was able to claw back some losses after the US Federal Reserve announced new measures to help markets. This sparked a slight upswing of risk appetite and investors began to move away from the safe-haven Dollar.
Looking ahead, the â€˜Greenbackâ€™ is likely to make further gains as the number of coronavirus cases increase and investors flock back to the Dollar.
Pound Canadian Dollar (GBP/CAD) Exchange Rate Rises as Oil Prices Fall
The Pound (GBP) was able to make gains against the Canadian Dollar (CAD) today as oil prices extended its slump as governments around the world introduced measures to attempt to contain the coronavirus outbreak. This included Canada
to become the first team to pull out of the Tokyo 2020 Olympics due to concerns over Covid-19.
The pandemic has dampened oil demand and caused prices to fall for four consecutive weeks. Oil prices have fallen by around 60% since the start of 2020.
Looking ahead, the â€˜Loonieâ€™ could extend its losses if oil prices continue to slump as traders fret about the global economic outlook.
Coronavirus Sends the Pound Australian Dollar (GBP/AUD) Exchange Rate Higher
The Pound Australian Dollar (GBP/AUD) exchange rate rallied, as risk sentiment remained on the back foot as mounting coronavirus concerns weighed on riskier assets.
also announced it would be shutting down all non-essential services in order to help slow the spread of the virus. Also, both Australia and Canada announced they would not send athletes to the Summer Tokyo Olympic games if it is not delayed due to the coronavirus.
Looking ahead, the â€˜Aussieâ€™ could slump further against the Pound overnight following the release of CommBankâ€™s PMI composite for March. If the PMI plummets further than expected, AUD will slide.
Pound New Zealand Dollar (GBP/NZD) Exchange Rate Edges Higher as NZ to Move into Lockdown
The New Zealand Dollar (NZD) slumped against the Pound (GBP) on Monday after the Reserve Bank of New Zealand (RBNZ) announced it would print around $30 billion over the next year.
Added to this, Prime Minister Jacinda Ardern said the country would move to full lockdown by Wednesday in order to help slow the spread of coronavirus.
Looking ahead, the â€˜Kiwiâ€™ will continue to remain on the back foot if investors continue to move away from riskier assets in favour of more traditional safe-havens.
As of Monday, 23rd March 2020, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.0769, GBP USD exchange rate was 1.1592, GBP AUD exchange rate was 1.9727, GBP NZD exchange rate was 2.0187, and GBP CAD exchange rate was 1.6786.