Published: 27 Oct at 4 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany,
Bets that the recent softening in the Pound was too extreme, coupled with the assertions of Bank of England policy maker Ian McCafferty, have helped Sterling strengthen against several of its most traded currency peers. McCafferty has claimed that the UK will face inflationary pressures in 2015 unless the BoE increases interest rates now. The Pound was also able to advance on rivals like the US Dollar and Euro thanks to an above-forecast CBI reported sales figure.
After the US Markit Services PMI and Pending Home Sales report came in below forecast levels, the US Dollar posted widespread declines. As disappointing US data is likely to prevent the Federal Open Market Committee from increasing interest rates in the near future, the signs of slowing output in the second half of the year werenâ€™t well received.
As the European Central Bankâ€™s stress test of European financial institutions had more plus points than had been assumed would be the case, the Euro was able to strengthen on Monday. The common currency maintained a stronger position against the US Dollar and Pound even as German IFO sentiment measures fell by more-than-anticipated.
With geopolitical tensions easing and economic reports for Australia
in short supply, the commodity-driven Australian Dollar closed out the South Pacific session trending higher against the â€˜Greenbackâ€™. â€˜Aussieâ€™ movement may be limited ahead of the release of Australiaâ€™s New Home Sales report and Private Sector Credit figures.
At the close of last week the New Zealand Dollar softened to a one-week low in response to concerning domestic inflation data. The â€˜Kiwiâ€™ is still trending in a weaker position against many of its rivals as a result of bets that the Reserve Bank of New Zealand will opt to leave interest rates on hold when it gathers on Wednesday.
With various factors supporting the Pound, the GBP/CAD exchange rate was able to advance by over 0.3% on Monday. Canadian data is lacking until Wednesday, when the nationâ€™s industrial product price and raw materials price indexes are published.
As of Monday, 27th October 2014, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2694, GBP USD exchange rate was 1.6124, GBP AUD exchange rate was 1.8313, GBP NZD exchange rate was 2.0432, and GBP CAD exchange rate was 1.814.