Published: 24 Mar at 5 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany, Russia,
Pound (GBP) Rebounds as Boris Johnson Tells Britons to Stay at Home
The Pound (GBP) was able to edge higher against a handful of currencies today, including the US Dollar (USD) and Euro (EUR), gaining some respite after slumping in recent days.
The British currency was able to benefit from a huge wave of selling against the Dollar, and Prime Minister Boris Johnson’s announcement that all shops selling non-essential items would be closed. Johnson also said that people would need to stay at home.
However, the outlook for GBP remains bearish despite the weakness in USD offering the currency some strength. Weak retail price and inflation data on Wednesday could dampen Sterling sentiment, causing the currency to give up today’s gains.
Pound Euro (GBP/EUR) Exchange Rate Jumps as German Economy Nears Recession
The Pound (GBP) rose against the Dollar (USD) as the single currency was dealt a further blow after German PMI data disappointed investors.
The bloc’s largest economy saw its services PMI plummet to the lowest level since the survey began over 20 years ago, adding to further expectations the German economy is headed for a recession.
Looking ahead, the Euro could slump further following the release of weak Ifo business climate. If sentiment plummets further than expected, EUR will slide.
Pound US Dollar (GBP/USD) Exchange Rate Rebounds on Fed’s Announcement
The Pound US Dollar (GBP/USD) exchange rate was able to make significant gains today, as traders moved away from the safe-haven USD as risk sentiment improved. Monday saw the US Federal Reserve announce it would be offering as much liquidity as possible to markets, boosting risk appetite.
Added to this, PMI data revealed the country’s economic output plummeted at the fastest rate in over a decade thanks to the coronavirus pandemic.
Looking ahead, disappointing US durable goods orders could send the currency lower. If February’s durable goods orders slump further than expected, it could weigh on the ‘Greenback’.
Pound Canadian Dollar (GBP/CAD) Exchange Rate Rallies despite Rising Oil Prices
The Pound (GBP) rallied against the Canadian Dollar (CAD) today, despite oil prices rising over 3% after the US Federal Reserve’s announcement.
However, the oil-sensitive ‘Loonie’ remained under pressure as analysts worried oil prices would not be able to recover amid the worsening coronavirus pandemic and tensions between Saudi Arabia and Russia.
Looking ahead, CAD will continue to suffer losses if oil prices begin to slump once again and investors remain focused on the coronavirus pandemic.
Pound Australian Dollar (GBP/AUD) Exchange Rate Edges Higher on Weak Aussie PMI
The Pound Australian Dollar (GBP/AUD) exchange rate edged higher today despite an increase in risk appetite amongst traders.
A disappointing Australian services PMI weighed on the ‘Aussie’, while the country’s PMI composite plummeted to 40.7 from 49 in March, sending the currency lower.
Looking ahead, if risk appetite is hit again, the risk-sensitive AUD is likely to slump further against a handful of currencies.
Pound New Zealand Dollar (GBP/NZD) Exchange Rate Flat on Fed’s Announcement
The Pound (GBP) remained largely flat against the New Zealand Dollar (NZD) this afternoon, with the ‘Kiwi’ benefitting from the measures announced by the US Federal Reserve.
Looking ahead, if risk appetite increases and UK economic data disappoints, this could allow NZD to make some gains against the Pound during tomorrow’s session.
As of Tuesday, 24th March 2020, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.0914, GBP USD exchange rate was 1.1791, GBP AUD exchange rate was 1.9732, GBP NZD exchange rate was 2.023, GBP CAD exchange rate was 1.7026, and GBP RUB exchange rate was 92.3131.