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Mon 30 Nov 2020 20:59GMT

Exchange Rate Update: Pound Fluctuates ahead of BoE Announcement

Published: 30 Jan at 12 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada,

Pound Sterling
Although the UK published positive consumer confidence data on Friday, the Pound prepared to close out the week trending slightly lower against the Euro and in a narrow range against the US Dollar. Next week’s Bank of England interest rate decision could prove influential if the BoE follows the ECB, SNB, BOC and RBNZ and surprises markets.

US Dollar
A comparatively upbeat policy statement from the Federal Reserve and an impressive decline in US initial jobless claims figures lent the ‘Greenback’ support before the close of the week. However, if the US fourth quarter growth data shows a slowing in expansion the US Dollar could struggle.

Although the pace of disinflation in the Eurozone worsened in January (with CPI slipping to 0.6%) the Euro was comparatively unaffected by the report. The common currency derived some modest support from the news that the level of unemployment in the Eurozone declined ever-so-slightly.

Australian Dollar
During the Australasian session, the ‘Aussie’ was little affected by on-forecast Australian Private Sector Credit figures or a slight decline in the nation’s Producer Price Index. Demand for the South Pacific currency remains seriously undermined by RBA interest rate cut expectations and that is likely to remain the case until the central bank delivers its decision next Tuesday.

New Zealand Dollar
The ‘Kiwi’ remained trading lower against almost all of its main currency counterparts on Friday as the RBNZ’s comments regarding possible adjustments to borrowing costs pushed investors away from the New Zealand Dollar.

Canadian Dollar
Predictions that Friday’s Canadian growth data will show stagnation in November kept the ‘Loonie’ under pressure. The commodity-driven currency continues to languish close to multi-year lows against peers like the Pound and US Dollar as a result of sliding oil prices.
As of Friday, 30th January 2015, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.3349, GBP USD exchange rate was 1.5068, GBP AUD exchange rate was 1.9417, GBP NZD exchange rate was 2.0749, and GBP CAD exchange rate was 1.9187.
Laura Parsons About Author: (359 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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