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Thu 16 Jul 2020 03:29GMT

GBP/EUR Gains, USD/GBP Climbs, But UK Retail Sales to Cause FX Movement

Published: 23 Apr at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Greece,

Pound Sterling
Prior to the publication of the UK’s public spending and retail sales figures, the Pound was trading in a stronger position against the Euro. The GBP/EUR pairing was able to hold above 1.40 as PMI reports for the Eurozone and its largest economies printed below expected levels. However, Sterling lost ground against the US Dollar as Wednesday’s better-than-forecast US housing data lent the currency support.


Euro
Greek concerns and a bad batch of Composite/Services/Manufacturing PMIs for the Eurozone and its largest economies kept the Euro trending lower on Thursday. The Eurozone’s Composite PMI declined from 54.0 in March to 53.5 in April rather than rising to 54.4 as expected. The result indicates that the European Central Bank’s quantitative easing measures may not be having the positive impact economists expected.


US Dollar
Although demand for the US Dollar remains a little muted due to expectations that the Federal Reserve will hold off adjusting interest rates until later in the year, an impressive 6.1% surge in New Home Sales helped the ‘Greenback’ recover losses against a number of its rivals. In the hours ahead, US manufacturing and initial jobless claims numbers will be dictating the direction Sterling takes.



Australian Dollar
On Wednesday the Australian Dollar was supported by bets that the latest batch of Australian inflation figures will prevent the Reserve Bank of Australia from cutting borrowing costs in May. However, the ‘Aussie’s uptrend was stymied by less-than-impressive data for both Australia and China. China’s HSBC Manufacturing PMI was shown to have fallen further into contraction territory, moving from 49.6 to 49.2.



New Zealand Dollar
The New Zealand Dollar was trending lower across the board as the week continued and manufacturing data for China, one of New Zealand’s main trading partners, disappointed forecasts. New Zealand’s domestic reports impressed however, with the nation’s Consumer Confidence Index rising 3.4% and Credit Card Spending being shown to have increased by 0.6% on the month.


Canadian Dollar
The ‘Loonie’ slumped to a one-week low against the Pound yesterday as the BoE minutes drove the British asset higher against a number of rivals. With Canadian data lacking this week, any additional Canadian Dollar movement will be the result of commodity price movements and global economic developments.
As of Thursday, 23rd April 2015, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.3917, GBP USD exchange rate was 1.5052, GBP AUD exchange rate was 1.9356, GBP NZD exchange rate was 1.9835, GBP CAD exchange rate was 1.8289, and GBP CNY exchange rate was 9.3277.
Laura Parsons About Author: (357 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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