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Wed 2 Dec 2020 01:05GMT

Euro Exchange Rates Falls as Draghi Leaves Interest Rate Unmoved - Send Money UK

Published: 24 Jan at 4 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, France,

Pound Sterling (GBP)
The Pound (GBP) failed to make any significant gains today with an absence of important UK data releases.

Prime Minister Theresa May, however, has come under increasing pressure to drum up support for her Brexit ‘Plan B’ after the EU’s Chief Brexit Negotiator, Michel Barnier, said that it is either May’s deal or a no-deal, leaving some Sterling investors disappointed.

US Dollar (USD)
The US Dollar (USD) struggled to make any gains today after the divide between the White House and the House of Representatives increased after the House Speaker Nancy Pelosi blocked President Donald Trump’s State of the Union address.

USD investors, however, were buoyed somewhat by the publication of the US continuing jobless claims figures for January, which showed a better-than-expected decrease to 1.713m.

These were followed by the publication of the US Markit Manufacturing PMI figures for January which also increased above expectation to 54.9, bolstering some confidence in the ‘Greenback’.

Euro (EUR)
The Euro (EUR) started off weak today after the publication of the latest Eurozone PMI figures for January, which fell below expectations and narrowly avoided contracting, causing concern for many EUR traders.

The publication of the French Markit services PMI figures for January also fell well below expectations to 47.5, its weakest in over four years, with blame placed on the recent ‘Yellow Vests’ protestors, which has rattled the French economy.

Today also saw the Euro’s value slip as the European Central Bank’s Mario Draghi announced that interest rates would remain at 0%, with the ECB saying that they would be ‘at their present levels at least through the summer of 2019.’

Australian Dollar (AUD)
The Australian Dollar was hit today by the publication of Australia’s participation rate figures for November which showed a surprise decrease to 65.6%, leaving the ‘Aussie’ on a weaker footing.

These were followed by the printing of Australia’s unemployment rate figures, however, which showed a positive decrease, buffering some of AUD’s losses.

AUD benefited from the news that China would increase its fiscal spending to improve its economy, and with China being Australia’s biggest trading partner this has encouraged investor confidence in the ‘Aussie’.

New Zealand Dollar (NZD)
The New Zealand Dollar has remained relatively steady today despite disappointing credit card spending figures for December, which left the ‘Kiwi’ unmoved.

NZD investors were uninspired by the signs of a recovering Chinese economy, with concerns focused on the Reserve Bank of New Zealand (RBNZ) after signs that the Reserve Bank of Australia (RBA) may have to cut interest rates, which will have a knock-on effect –potentially weakening confidence in the ‘Kiwi’.

Canadian Dollar (CAD)
The Canadian Dollar failed to recover from Wednesday’s publication of the Canadian retail sales figures for November, which decreased by a worse-than-expected -0.9%.

CAD has been continuously wracked by concerns over tensions between Canada and China after the arrest of Huawei’s Chief Financial Officer last year, and with the export-heavy Canadian economy sensitive to global political tensions, this has left the ‘Loonie’ increasingly bereft of support.

As of Thursday, 24th January 2019, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1602, GBP USD exchange rate was 1.3125, GBP AUD exchange rate was 1.8519, GBP NZD exchange rate was 1.942, GBP CAD exchange rate was 1.7525, and GBP CNY exchange rate was 8.9099.
Dominic Lee About Author: (443 Posts)With over ten years experience as an economist – including four years spent as a chief economist with a major currency broker – Dominic has acquired a wealth of knowledge which he uses to forecast market movements. Dominic now works as an independent business advisor and writes for several financial publications.

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