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Canadian Dollar Soft on Global Oil Oversupply Concerns, ?Kiwi? Bullish ahead of RBNZ Rate Decision

Published: 27 Oct at 5 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Australia, New Zealand, USA, Germany,

Pound Sterling

It has not been a strong day for the Pound today as the third quarter UK GDP printed at a lower level than forecast both on the year and on the quarter. Although the service industry continued to expand this was generally outweighed by a severe contraction within domestic construction and declining manufacturing growth. Boding badly for the prospect of a nearer-term interest rate rise from the Bank of England (BoE) this weaker result set Sterling on a downtrend against many of the majors on Tuesday.

Euro

Sentiment towards the Euro has largely picked up throughout Tuesday in spite of a lack of domestic data to drive movement. The common currency appears to have benefitted from a swing back towards risk aversion, with the safe-haven strengthening as its higher-risk rivals see a downturn in demand. Tomorrow’s German Consumer Confidence Survey may put the single currency on another dovish run, however, as the index is expected to show a decrease in confidence on the month.

US Dollar

Today’s US data has been somewhat mixed, with the Durable Goods Orders for September printing above forecast as the October Consumer Confidence figure slumped substantially. Falling from 103 to 97.6, this weakening consumer sentiment gauge has weighed on the ‘Greenback’ this afternoon. Despite the likelihood of a 2015 interest rate rise from the Fed seeming to dwindle further on the back of this discouraging report, however, the US Dollar has remained on a relatively strong footing against rivals.

Australian Dollar

Sentiment towards the ‘Aussie’ has turned generally muted today, with the disappointing US data failing to offer the antipodean currency any particular boost. With markets moving back towards a more risk averse standing the Australian Dollar has ceded back much of its recent gained ground on Tuesday. Nevertheless, tonight’s third quarter domestic Consumer Price Index could offer the ‘Aussie’ a rallying point, with pundits anticipating that the measure will show an increase in inflation.

New Zealand Dollar

Despite an unexpectedly widened deficit evidenced by the New Zealand Trade Balance and declining domestic exports overnight the ‘Kiwi’ has been only bullish form on Tuesday afternoon. A general decline in risk sentiment has failed to impact the South Pacific currency, with investors apparently optimistic ahead of tomorrow’s Reserve Bank of New Zealand (RBNZ) Rate Decision.

As of Tuesday, 27th October 2015, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.3877, GBP USD exchange rate was 1.5311, GBP AUD exchange rate was 2.129, and GBP NZD exchange rate was 2.2602.
Dominic Lee About Author: (412 Posts)With over ten years experience as an economist – including four years spent as a chief economist with a major currency broker – Dominic has acquired a wealth of knowledge which he uses to forecast market movements. Dominic now works as an independent business advisor and writes for several financial publications.

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