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Tue 11 Aug 2020 07:52GMT

FOMC Announcement Looming: GBP, USD Softer, EUR Steady, NZD Climbs

Published: 29 Oct at 1 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany,

Pound Sterling
With UK mortgage approvals coming in below forecast levels, the Pound softened against almost all of its currency counterparts on Wednesday. The British asset was also feeling the pressure as a result of yet more dovish comments from prominent Bank of England officials. As both of the institution’s Deputy Governors have been vocal in their support for leaving interest rates on hold, the central bank is unlikely to make any adjustments to fiscal policy in the near future.

US Dollar
Yesterday’s disappointing US Durable Goods Orders data counteracted the impact of a positive Consumer Confidence reading and saw the US Dollar slide against the majority of its peers. The North American asset could extend declines tonight if the Federal Open Market Committee’s policy statement is dovish in tone.

Euro
A lack of economic reports for the Eurozone left the Euro softer against the New Zealand Dollar but trending in a stronger position against the Pound and US Dollar as both currencies came under domestic pressures. Tomorrow’s batch of influential data, including Germany’s unemployment stats, is likely to cause Euro movement.

Australian Dollar
With disappointing US data upping the odds of the Federal Open Market Committee stressing the importance of keeping fiscal policy accommodative during tonight’s policy statement, the Australian Dollar broadly strengthened. The AUD/USD exchange rate achieved a three-week high during the Australasian session.

New Zealand Dollar
A notable improvement in both New Zealand’s Business Confidence and Activity Outlook figures gave the ‘Kiwi’ a boost overnight. The commodity-driven currency advanced on the ‘Aussie’, ‘Greenback’ and Pound ahead of the Reserve Bank of New Zealand’s interest rate announcement.

Canadian Dollar
So far this week economic reports for Canada have been lacking, leaving movement in the Canadian Dollar to be dictated by global economic developments. While today’s Canadian Industrial Product Price and Raw Materials Price indexes are low volatility, they could spark some ‘Loonie’ fluctuations.
As of Wednesday, 29th October 2014, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.2669, GBP USD exchange rate was 1.6003, GBP AUD exchange rate was 1.8254, GBP NZD exchange rate was 2.0568, and GBP CAD exchange rate was 1.7912.
Dominic Lee About Author: (424 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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