Published: 28 Jan at 4 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Germany,
Pound Sterling (GBP)
The Pound (GBP) struggled against many of its peers today as the double-threat of both Brexit and an interest rate cut from the Bank of England (BoE) on Thursday have weighed on market appetite for Sterling.
The UK is due to officially leave the European Union on Friday, January 31, which has left many investors concerned that the UK could face a no-deal with the EU later on this year due to a short ‘transition period’ scheduled by the British Government.
Today also saw the UK CBI retail sales report for January flat-line at 0%, adding further pressure on the BoE to slash its interest rates as the UK’s economic outlook looks increasingly uncertain for 2020.
US Dollar (USD)
The US Dollar (USD) benefited from its safe-haven status today with the ongoing crisis over China
’s coronavirus dampening market’s risk appetite as the toll of causalities continues to rise.
While US home sales in December fell below forecasts to 0.694 million earlier this morning, the US Dollar has benefited from improved durable goods orders for the same month, with the figure rising to 2.4% against the -3.1% in the month prior.
The Euro (EUR) has also gained from it safe-haven status today, but lingering concerns over the Eurozone’s economic health have prevented the European currency making any notable gains against its peers.
This follow’s yesterday’s release of January’s German IFO business sentiment gauges, which showed a notable decrease in business morale for the year ahead. As Germany
is the Eurozone’s largest economy, this has become of high concern for Euro investors as the bloc’s economy continues to struggle.
Australian Dollar (AUD)
The risk-averse Australian Dollar (AUD) has suffered from risk-off market moods, with China’s economy increasingly under threat due to the spread of the coronavirus. As China is Australia
’s largest trading partner, any deterioration in the second-largest economy has a negative effect on the ‘Aussie’.
Today also saw the release of Australia’s National Australia Bank business confidence figure for December, which fell to -2 and weakened confidence in AUD as the economy continues to struggle.
The New Zealand Dollar (NZD) has also suffered from a downturn in risk-appeal, with New Zealand’s economy also being closely linked with that of China.
Canadian Dollar (CAD)
The Canadian Dollar (CAD), a commodity-linked currency, has also been under pressure over growing fears that the coronavirus could harm the Chinese economy and limit trade between Canada
There are also growing concerns over whether the Bank of Canada (BoC) could cut its interest rates, with ‘Loonie’ traders looking ahead to Thursday’s release of November’s Canadian GDP figures for further guidance.
As of Tuesday, 28th January 2020, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.1816, GBP USD exchange rate was 1.3023, GBP AUD exchange rate was 1.9254, GBP NZD exchange rate was 1.9916, GBP CAD exchange rate was 1.7145, and GBP CNY exchange rate was 9.0337.