Published: 25 Feb at 5 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Germany,
A lack of UK data left the Pound trending in a fairly narrow range against the majority of its currency counterparts on Wednesday. Sterling had gained earlier in the week thanks to comments issued by BoE Governor Mark Carney. The central bank chief implied that interest rates will be increased despite the dimmer inflationary outlook. If the week’s remaining UK data supports the case for borrowing costs being increased, Sterling could record additional gains.
As Federal Reserve Chairwoman Janet Yellen chose to adopt a fairly neutral stance on the subject of interest rates in her testimony to Congress, the US Dollar softened against many of its rivals. It had been hoped by some that Yellen would discuss the subject more hawkishly. US housing data had little impact on the ‘Greenback’.
The common currency continued trading in the region of a seven-year low against the Pound ahead of the publication of the UK’s fourth quarter growth data and Germany
’s unemployment figures. Positive data from the Eurozone could help the Euro recoup some of its recent losses.
An almost dovish speech from Janet Yellen, coupled with surprisingly strong Chinese data and on-forecast Australian data, saw the ‘Aussie’ push higher during the local session. China
’s Manufacturing PMI returned to expansion territory in February, taking economists by surprise and bolstering the commodity-driven currencies like the Australian Dollar.
The New Zealand Dollar tracked its Australian relation higher during the Australasian session. Both Oceanic currencies were boosted by the positive Chinese ecostat and the reduced expectations of the Federal Reserve increasing interest rates in the early summer. The upcoming trade data for New Zealand could encourage more movement in the ‘Kiwi.’
After Bank of Canada
Governor Stephen Poloz reassured markets that the central bank doesn’t intend to cut interest rates at its next policy meeting, the Canadian Dollar posted widespread gains. Tomorrow’s Canadian inflation data is likely to spark ‘Loonie’ volatility.
As of Wednesday, 25th February 2015, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.3663, GBP USD exchange rate was 1.5527, GBP AUD exchange rate was 1.9696, GBP NZD exchange rate was 2.0509, GBP CAD exchange rate was 1.9306, and GBP CNY exchange rate was 9.7189.