Published: 26 Aug at 1 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada,
In an extremely quiet week by way of UK data releases, the Pound (GBP) is likely to fluctuate in its exchange rates dependent on its counterparts statistics. The Bank of England (BoE) however have released statements claiming that any miscommunication with the public regarding the highly speculated interest rate hikes have been down to their focus on wage growth in latter months. Deputy Governor for the BoE Ben Broadbent stated that the blinkered focus on unemployment and wages has made it â€˜harder to communicate publically what matters for policy.â€™ The Pound is presently trading against the Euro (EUR) at 1.2561 and against the US Dollar (USD) at 1.6570.
The Euro (EUR) has been trending higher against the Pound (GBP) following a return of investors sentiment in the Eurozone recovery. President for the European Central Bank (ECB) Mario Draghi proved clearer in his views on Friday at the highly influential Jackson Hole conference that took place amongst banking leaders. One of the most important factors of Draghiâ€™s statements came by way of recognition of the Eurozoneâ€™s low inflation problem which has previously been whisked over by the President. The Euro is presently trading at 0.7955 versus the Pound (GBP) whilst also trending in the region of 1.3193 against the US Dollar (USD).
US Dollar (USD)
The US Dollar (USD) has remained fairly consistent in the currency market following the Jackson Hole conference in Wyoming, which enabled central bank leaders to discuss policy openly. Despite the Federal Reserve declining to commit to the exact timing of interest rate rises, the US Dollar is trading higher in anticipation for rate hikes in the US in 2015. Currency expert Jens Nordvig commented: â€˜Leading up to the first hikes, thatâ€™s when the Dollar gains most consistently.â€™ The US Dollar is reaching highs of 0.6038 against the Pound (GBP) whilst also attaining up to 0.7589 in its exchange rate against the Euro (EUR).
Canadian Dollar (CAD)
The Canadian Dollar (CAD) will witness a quiet week by way of data released with Friday proving the most influential day for the â€˜Loonieâ€™. Friday will see the release of Canadian Gross Domestic Product figures which will indicate Canada
â€™s overall economic expansion. Juneâ€™s year-on-year figures are expected to rise by 3.0%; meanwhile, the second quarterâ€™s growth is forecast to reach 2.7%, in comparison to the firsts 1.2%. The Canadian Dollar is currently trading against the US Dollar (USD) at 0.9122 and reaching highs against the Pound (GBP) of 0.5502.
Australian Dollar (AUD)
Tuesday has seen the Australian Weekly Consumer Confidence Index figures beat the previous 112.5, published instead at 113.5. Wednesday will see the release of Australian Construction Work Done statistics, whilst Thursday will see the publication of New Home Sales figures. The Australian Dollar has come under fire from the Reserve Bank of Australia
with claims of overvaluation; however, Westpac have stated their opposition, claiming that the â€˜Aussieâ€™ is accurately priced. The Australian Dollar has reached yearly highs against the Euro (EUR) presently trending in the region of 0.7043.
The New Zealand Dollar (NZD) is currently trading between the ranges of 0.8308 and 0.8349 versus the US Dollar (USD) after it fell lower in anticipation of the Jackson Hole symposium. The â€˜Kiwiâ€™ has weakened in its exchange rate against the â€˜Buckâ€™ as the Chairwoman for the Federal Reserve, Janet Yellen, spoke about matters regarding monetary policy. Expert in the field Kathy Lien stated: â€˜In a nutshell, investors bid up the Dollar when they realised that Yellen said nothing to discourage the hawks.â€™
As of Tuesday, 26th August 2014, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2565, GBP USD exchange rate was 1.6546, GBP AUD exchange rate was 1.7766, GBP NZD exchange rate was 1.984, and GBP CAD exchange rate was 1.8123.