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Send Money News: Emerging Markets Recover as Syria Tensions Ease

Published: 29 Aug at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany, Japan, South Africa,

Pound Sterling

The Pound made a second day of gains against the Euro following yesterday’s speech to business leaders in Nottingham by Bank of England Governor Mark Carney’s. His comments failed to convince investors that the Central Bank will maintain interest rates at the current record lows. As a result the currency managed to rebound after falling to a three-week low against the single currency in yesterday’s session.

Sterling also found some support as the feared military action against Syria was delayed after the British government announced that they would wait for United Nations weapons inspectors to deliver their report on an alleged chemical attack.

US Dollar

The ‘Greenback’ remains higher against the Euro as investors await the release of data which is expected to show that the US economy grew at a faster-than-expected rate, figures due to be released by the US Commerce department are expected to show that GDP expanded by 2.2%, beating estimates of a 1.7% rise. Against the emerging market currencies the Dollar has softened due to an easing in the tensions regarding Syria.

Euro

The Euro is weaker against both the Pound and US Dollar as the possibility of military action in Syria continues to cause uncertainty in the markets. Yesterday’s soft sentiment data releases from the Eurozone and today’s Disappointing unemployment figures out of Germany also weighed upon the currency.

Australian Dollar

The ‘Aussie’ recovered some of its losses against its US relation due to the release of positive data. The Australian Bureau of Statistics said that investment into the country increased by 4% in the second quarter. The figure beat expectations of a 1% increase. The currency also found support as the threat of military action in Syria receded, lifting confidence across Asia.

New Zealand Dollar

The ‘Kiwi’ recovered some ground against the US Dollar as fears over a possible strike against Syria faded slightly as the western powers debated whether military action would be effective at halting chemical weapons attacks. Such action would be deeply unpopular among the population of the UK and other allies. If a strike does occur then it’s likely that the ‘Kiwi’ will fall sharply.

Canadian Dollar

The ‘Loonie’ weakened against its US relation as speculation over military action against Syria outweighed the gains made from higher oil prices and supported demand for the safe haven ‘Greenback’. Friday sees the release of the latest GDP data for the country, if it comes in as expected and shows a contraction of the economy the ‘Loonie’ will fall further against the US Dollar due to concerns of divergence between the two North American nations.

Japanese Yen

The Yen weakened against the US Dollar after gains in Asian equities markets reduced demand for the safe haven Yen. The equities increased following a recovery in Wall Street as tensions over a possible military strike against Syria lessened.

South African Rand

The Rand edged higher against the US Dollar after worries over military action in Syria eased. The currency remains under heavy pressure as labour unrest in the country looks set to increase as gold miners prepare to down tools and workers at petrol stations and car dealerships get ready to strike next week.

As of Thursday, 29th August 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1713, GBP USD exchange rate was 1.5506, GBP AUD exchange rate was 1.738, GBP NZD exchange rate was 1.998, GBP CAD exchange rate was 1.6338, GBP JPY exchange rate was 152.5203, and GBP ZAR exchange rate was 16.038.
Laura Parsons About Author: (357 Posts)Laura works in the financial sector as a currency analyst, studying the latest global economic developments and assessing their impact on the foreign exchange market. Laura uses her currency knowledge to write articles focussing on market movements and trends for several independent financial websites.

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