Published: 26 May at 2 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, France, Germany,
The Pound exchange rate held steady today because of a lack of any influential UK economic data.
UK markets remain on the whole positive, however, with Covid-19 infection rates only modestly rising, while daily hospitalisations are showing signs of dropping. Daily deaths from the coronavirus are also relatively low compared to the start of this year.
Meanwhile, the property website Zoopla has predicted that house prices could leap by as much as 46% this year.
Grainne Gilmore, head of research at Zoopla, commented on the projection:
‘Households who have the opportunity to commute less frequently have more options when it comes to choosing where to live, and this could prompt a move.
‘At the same time, supply constraints will continue to underpin pricing. The lack of supply is expected to hamper potential sales during this year, yet even so, we expect total transactions this year to rise to 1.5 million, marking one of the busiest years in the UK’s residential market in more than a decade.’
The Euro (EUR) continued to rise today after the latest German IFO survey revealed a strong return of business confidence. The figure beat forecasts and rose to a two-year high in May, buoying optimism in the Eurozone’s largest economy.
Today also saw the release of the latest French business climate figure for manufacturing in May. This figure also beat forecasts, rising from 104 to 107.
French consumer confidence also rose in May, with the figure confirming consensus and rising from 95 to 97.
Consequently, the single currency has received support from growing confidence in the Eurozone’s economy, which is showing signs of a steady recovery.
US Dollar (USD)
The US Dollar (USD) struggled today following further expectations about the US Federal Reserve, which is now expected to maintain its accommodative stance for the foreseeable future.
Chicago Fed President Charles Evans said that the ‘recent increase in inflation is not a precursor of undesirably high inflation’.
Improving risk-sentiment has also limited the appeal for the safe-haven ‘Greenback’.
Canadian Dollar (CAD)
The Canadian Dollar (CAD) has continued to benefit from risk-on mood and rising oil prices, as WTI holds at around $65 a barrel.
Australian Dollar (AUD)
The Australian Dollar (AUD) has also benefited from improving risk sentiment today. The risk-sensitive ‘Aussie’ has steadily traded higher as positive market mood drive demand for riskier assets.
The New Zealand Dollar (NZD) surged today after the Reserve Bank of New Zealand (RBNZ) held interest rates at a record-low of 0.25% as widely expected.
The RBNZ’s monetary policy minutes also revealed a more bullish mood from New Zealand’s central bank. Various comments signalled that the RBNZ could plan to raise interest rates from the middle of 2022.
As of Wednesday, 26th May 2021, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.158, GBP USD exchange rate was 1.412, GBP AUD exchange rate was 1.8245, GBP NZD exchange rate was 1.9403, and GBP CAD exchange rate was 1.7128.