Published: 29 Jul at 12 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Germany, Greece,
Pound Sterling (GBP)
After British economic data bettered median market forecasts, the Pound strengthened versus many of its currency rivals. Net Consumer Credit, Net Lending Securities on Dwellings and Mortgage Approvals all eclipsed the respective market consensuses. However, Sterling gains were a little sluggish as data revealed that British lending to non-financial businesses slumped to the lowest level since records began in 2011.
Despite German Consumer Confidence managing to hold in line with economists’ forecasts, the shared currency is trending relatively statically against its major peers. The lack of volatility can be attributed to uncertainties regarding Greece
amid ongoing negotiations between Greek officials and creditor representatives. Greek Prime Minister Alexis Tsipras warned that the prospect of a Grexit will continue to be an issue until debt restructuring is tackles, and until the Hellenic nation received its long-anticipated third bailout package. Mounting uncertainties could cause subdued Euro trade over the coming weeks.
US Dollar (USD)
As traders await news from the two-day Federal Open Market Committee (FOMC) policy meeting, the US Dollar edged lower versus its currency rivals. The ‘Greenback’ (USD) is holding a comparatively weak position thanks to speculation that the issues with China
’s equity market and a lack of inflationary pressures will cause the FOMC to hold the cash rate for the foreseeable future.
Canadian Dollar (CAD)
With crude oil prices showing no sign of a swift recovery, the Canadian Dollar continues to trend lower against the majority of its most traded currency rivals. With mounting speculation that Canada
’s growth data for May will print poorly on Friday, the ‘Loonie’ (CAD) is unlikely to rack up any significant gains for the remainder of this week’s trade.
Australian Dollar (AUD)
Having appreciated on Tuesday in response to Beijing’s promise to intervene in China’s stock market, the Australian Dollar declined on Wednesday. This is mostly due to fears that intervention will not have as great an impact as previously, and continued trader weariness could see a lack of investment in China’s equity markets. In addition, the prospect of China’s slowing economy is likely to weigh on demand for the South Pacific asset.
The New Zealand Dollar also softened versus most of its major peers on Wednesday for similar reasons to its Oceanic neighbour. A speech from Reserve Bank of New Zealand (RBNZ) Governor Graeme Wheeler, which showed the central bank’s intention to ease policy further, also weighed on demand for the ‘Kiwi’ (NZD).
As of Wednesday, 29th July 2015, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.4203, GBP USD exchange rate was 1.5606, GBP AUD exchange rate was 2.1371, GBP NZD exchange rate was 2.3439, GBP CAD exchange rate was 2.0204, and GBP CNY exchange rate was 9.69.