Published: 30 Oct at 2 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany,
While the Pound advanced on the Euro on Thursday, the British currency softened against several of its other main peers as investors bet that the Bank of England wonâ€™t raise interest rates until after the Federal Reserve adjusts US borrowing costs. The GBP/EUR exchange rate advanced by 0.2% but the GBP/USD pairing was trading around the dayâ€™s opening levels as investors responded to better-than-forecast US growth data.
After the Federal Open Market Committee announced the end of its quantitative easing programme, the US Dollar strengthened across the board. The â€˜Greenbackâ€™ later pared its advance, but rallied once more after the US economy was shown to have grown more in the third quarter of the year than economists expected. The US Dollar enjoyed a bullish relationship with peers like the Euro and Pound after the GDP data was published.
The Euro put on a mixed performance on Thursday as first positive and then negative data was released for the Eurozoneâ€™s largest economy. The number of unemployed persons in Germany
was shown to have fallen by considerably more than expected, but the pace of consumer price gains slowed â€“ adding to fears that Germany is on the verge of recession and triggering Euro losses.
In the hours following the Federal Open Market Committeeâ€™s interest rate announcement, investors lost their appetite for higher-risk currencies like the Australian Dollar. The â€˜Aussieâ€™ accordingly weakened against several of its most traded currency counterparts. However, over the course of the European session the Australian Dollar recouped losses against the Pound and Euro as both currencies were pressured by domestic developments.
The New Zealand Dollar recorded extensive and broad-based declines as the Reserve Bank of New Zealand intimated that interest rates would remain on hold for the foreseeable future. The central bank also stated that the â€˜Kiwiâ€™ is overvalued by historical standards and that it expects the currency to depreciate.
Comments from Bank of Canada
Governor Stephen Poloz caused some softness in the Canadian Dollar on Thursday. The commodity-driven asset declined after Poloz termed the currencyâ€™s recent depreciation as the â€˜icing on the cakeâ€™ for Canadian exporters.
As of Thursday, 30th October 2014, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2688, GBP USD exchange rate was 1.5999, GBP AUD exchange rate was 1.8133, GBP NZD exchange rate was 2.0414, and GBP CAD exchange rate was 1.7913.