Published: 29 Dec at 4 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Greece,
The Pound drifted lower against almost all of its main currency counterparts on Monday as a lack of UK data and the prospect of slowing domestic house prices took a toll on the British asset. If tomorrowâ€™s Nationwide house price report does indeed show that the pace of property price gains eased in December, the Pound could post further losses.
Although the last attempt to avoid a snap election in Greece
failed, leading to an election being scheduled for the end of January, the Euro managed to hold steady against the majority of its currency counterparts. With economic data for the Eurozone in short supply until Friday, further common currency movement could be limited.
The US Dollar posted modest declines on Monday as a result of a steeper-than-expected drop in the US Dallas Fed Manufacturing Activity Index. However, if tomorrowâ€™s US consumer confidence report shows the improvement expected, the â€˜Greenbackâ€™ could enjoy a rebound on Tuesday.
The Australian Dollar benefited from a change in Chinese policy during the Australasian session. The Peopleâ€™s Bank of China
â€™s decision to alter its lending conditions gave commodity-driven currencies like the â€˜Aussieâ€™ a boost and the AUD/USD pairing gained 0.3% while the AUD/GBP exchange rate climbed by over 0.5%.
News that the Peopleâ€™s Bank of China is adjusting lending restrictions gave the New Zealand Dollar a boost at the beginning of the week. As well as climbing by 0.5% against the US Dollar, the â€˜Kiwiâ€™ consolidated its position at a nine-year high against the â€˜Aussieâ€™. According to Bloomberg the central bank â€˜will include savings held by lenders for non-deposit-taking financial institutions into bank deposits from 2015â€™.
On Monday the price of crude oil pushed back above 60 US Dollars per barrel and the Canadian Dollar accordingly advanced on peers like the US Dollar and Pound. Movement in the currency is likely to be commodity-driven until Friday and the release of the Royal Bank of Canada
â€™s Manufacturing PMI.
As of Monday, 29th December 2014, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2765, GBP USD exchange rate was 1.5514, GBP AUD exchange rate was 1.9071, GBP NZD exchange rate was 1.9943, GBP CAD exchange rate was 1.8064, and GBP CNY exchange rate was 9.6538.