Published: 24 Mar at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Germany, Greece,
Prior to the release of the UK’s latest inflation figures, the Pound was holding steady against the US Dollar but trending in a slightly weaker position against the Euro. If today’s CPI prints below the 0.1% expected, Sterling could extend declines against the common currency.
Hopes that Greece
will soon reach a workable accord with its creditors, coupled with solid services/manufacturing data for Germany
and the Eurozone as a whole left the common currency trading higher. In the hours ahead inflation figures from the UK and US will be the main cause of common currency movement.
The US Dollar softened on Monday following the release of less-than-impressive US Existing Home Sales data. Declining hopes regarding a summer 2015 rate increase from the Federal Reserve were also weighing on the ‘Greenback’. Economists expect US CPI to print at -0.1% on the year in February. A lower figure could see the US Dollar extend declines.
Although the Australian Dollar derived support from hints that the Fed might delay increasing borrowing costs, the ‘Aussie’ pared gains overnight as China
issued some disappointing data. China’s HSBC Manufacturing PMI for March slid from 50.7 to 49.2, heading back into contraction territory. As China is Australia
’s largest trading partner, the result weighed on the commodity-driven asset.
China’s below-forecast Manufacturing PMI left the ‘Kiwi’ struggling during the local session. However, further New Zealand Dollar movement could occur later today following the publication of domestic trade balance figures.
After staging a rebound in response to an uptick in crude oil prices, the Canadian Dollar retraced its steps on Tuesday. China’s poor manufacturing report saw oil prices shed gains and the ‘Loonie’ followed the commodity lower.
As of Tuesday, 24th March 2015, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.3605, GBP USD exchange rate was 1.4834, GBP AUD exchange rate was 1.8869, GBP NZD exchange rate was 1.9457, GBP CAD exchange rate was 1.8558, and GBP CNY exchange rate was 9.2047.