Smart Daily Exchange Rates
Last week This week
(GBP/EUR – 1.1688) GBP/EUR – 1.1708
(GBP/USD – 1.5595) GBP/USD – 1.5492
(EUR/GBP – 0.8551) EUR/GBP – 0.8537
(EUR/USD – 1.3337) EUR/USD – 1.3231
(GBP/AED – 5.7272) GBP/AED – 5.69
(GBP/AUD – 1.7326) GBP/AUD – 1.7346
(GBP/CAD – 1.6446) GBP/CAD – 1.6319
(GBP/CHF – 1.4424) GBP/CHF – 1.4413
(GBP/HKD – 12.093) GBP/HKD – 12.0156
(GBP/INR – 100.71) GBP/INR – 101.796
(GBP/JPY – 154.26) GBP/JPY – 152.25
(GBP/NZD – 1.9966) GBP/NZD – 1.9936
(GBP/SEK – 10.186) GBP/SEK – 10.2508
(GBP/ZAR – 15.991) GBP/ZAR – 15.9815
Mark Carney’s comments help support Sterling
With the bank holiday on Monday, British markets played catch up a little when they re-opened on Tuesday and saw sterling fall ahead of Mark Carney’s first public speech since becoming governor of the bank of England. As expected, the new governor pledged to keep interest rates at record lows until the central bank saw significant improvements to the UK’s economy. Furthermore, the governor promised that even if unemployment fell below the 7% threshold, this was not an automatic trigger to raise interests rates and he went as far as suggesting the possibility of increased quantitative easing if the central bank deemed it necessary. However, investors were not convinced with his words and as such the pound made back its earlier losses – helped in part by the governor’s plans to relax liquidity buffers for the banks which would help increase current lending levels. Sterling continued to perform relatively well yesterday on the back of optimistic views of the country’s growing economic strength. Lending data released today may cause some volatility in the market, however any significant developments in Syria will likely cause a much greater reaction in the global markets as a whole. Call your trader now for the latest price on the pound, as investors continue their reaction to these events.
German data influences euro movements
It has been a relatively poor week for the euro amidst a stream of German data and influential events on the global stage. Tuesday saw the German Business Climate Index reveal a better than expected show of optimism in the Eurozone’s largest economy. The data is strongly correlated to prevailing economic conditions within the Eurozone so the strong figures had a positive effect, but this effect was tempered to an extent by poorer data from Spain and France, detailing greater contraction than first calculated in 2012 and increasing jobseekers respectively. After Tuesday, events elsewhere drove euro performance, with Mark Carney’s mid-week statement boosting sterling performance and developments in Syria sparking movement across the currency markets. The single currency traded down against sterling and the US dollar towards the end of the week, a decline which was aided by negative German data. Monthly unemployment change figures detailed a slight increase rather than the decrease that was expected and inflation data showed no change. In a day of abundant news, German retail data, Eurozone flash inflation figures and Eurozone employment rate data are all being released and further fluctuation is not unlikely. Call your trader now to see how these releases affect euro performance.
US dollar strengthens as fears of Syrian concerns mounts
Developments in Syria helped the US dollar to strengthen through the course of the week in spite of mixed data being released. As the threat of military action looms (although this threat subsided somewhat yesterday), investors have been looking to what are seen as the safer currencies – of which the US dollar is one – in order to minimise their risk. As such, we have seen the US dollar make decent gains against most of its partners throughout the course of the week. Data from the country this week has been mixed, with pending home sales and core durable goods orders being behind estimates, while consumer confidence and preliminary GDP came in ahead of predictions. Following the Federal Open Market Committees (FOMC) minutes released last week, all data becomes important as it influences the possibility of the Federal Reserve tapering its quantitative easing program, which many feel may well commence as early as next month. As such, the comments coming from the speech made by one of the members of the FOMC today may well influence the market. Furthermore, we have consumer sentiment figures, inflation data and personal spending data released. Get in touch with your trader now for the latest rates on the US dollar, as both internal and external factors affect it.
Commodity currencies struggle as the Japanese yen prospers
Elsewhere this week the markets have been dominated by the political uncertainty surrounding Syria. The biggest mover has been the Indian rupee, which after a difficult month nosedived this week to two-decade lows, before recovering slightly yesterday. The dive this week was triggered by a hike in global oil prices, caused by concern in the market that the Middle-Eastern situation will put a constraint on global supplies. For the same reason we saw the Canadian dollar have a strong start to the week, with crude oil being Canada’s biggest export. The Canadian currency dropped off yesterday, however, in anticipation of today’s GDP figures, which traders are betting will not be favourable. The Australian and New Zealand dollars both performed poorly this week, as anxiety in the markets sparked by the Syrian situation lowered demand for the higher-risk currencies. Similarly we saw the Japanese yen perform well, as traders bought-in to the safe-haven currency. As mentioned, today we have influential GDP data out of Canada, but little else is forecast to be released. Get in touch for a live rate.
Smart Daily Exchange Rates
GBP/EUR – 1.1702
GBP/USD – 1.5514
EUR/GBP – 0.8544
EUR/USD – 1.3256
GBP/AED – 5.6976
GBP/AUD – 1.7335
GBP/CAD – 1.6289
GBP/CHF – 1.4394
GBP/CNY – 9.4949
GBP/HKD – 12.031
GBP/HUF – 351.96
GBP/INR – 105.03
GBP/JPY – 152.18
GBP/NZD – 1.9899
GBP/RUB – 51.491
GBP/SEK – 10.172
GBP/THB – 49.923
GBP/ZAR – 16.032
Mark Carney fails to convince investors over his “forward guidance”
Sterling experienced mixed movements yesterday, suffering losses early in the day as investors speculated on what Mark Carney would say in his speech. Predictions leant towards him reiterating his forward guidance plans to keep interest rates at their record low and as such this weighed heavily on the currency. These predictions came true, and Mr Carney confirmed that the central bank had no intention of raising interest rates until they saw significant improvements to the UK’s economy. The Governor promised that even if unemployment fell below the 7% threshold, this was not an automatic trigger to raise interests rates as other factors needed to be considered; furthermore, he went as far as saying that if necessary the central bank could actually look to increase the current level of quantitative easing. In spite of this pledge, the Governor was unable to convince investors – many of whom are not expecting a rate hike in the next 12 months. On the back of this, the early losses were retraced somewhat, as investors reacted to Carney’s words. With no further significant data due from the country this week, further shifts in the exchange rate are likely to come mainly from developments in Syria and the continuing fallout and reaction from the Governor of the Bank of England’s speech. Call your trader now for the latest price on sterling.
More German data set to dictate euro prices
Eurozone news played second fiddle to influential factors elsewhere yesterday as the escalating situation in Syria and the Governor of the Bank of England’s speech stole the limelight. German consumer sentiment data did not mirror Tuesday’s better than expected Business Climate data, but it is likely that the effect of the survey was diminished by other events. The single currency lost ground in the afternoon against sterling and the US dollar as Carney’s words boosted sterling’s performance and the increasing possibility of an attack on Syria leant strength to the US dollar as risk aversion returned to the market. Another wave of German data is released today, including monthly inflation figures and details of the change in numbers of people claiming unemployment benefits. Both data sets have the potential to influence the performance of the seventeen-nation currency, but equally events elsewhere may again have a strong bearing on how the euro fares in its major pairings. Call your trader now to stay on top of market volatility.
US dollar strengthens as investors seek safer havens
The US dollar made the most gains for the week thanks to the unrest with Syria and the perceived likelihood of US military action. As such, investors looked to the US dollar – as one of the safer options in the market – to lower their risk, which would be an important factor should any military action be taken over the alleged use of chemical weapons. Data from the US showed that pending home sales came out significantly below expectations and whilst it had little immediate impact on the US dollar amid the Syria situation, it may have a long term effect due to the fact that it detracts from the promising economic picture that supports the introduction of tapering. Today, preliminary GDP figures and unemployment claims are due out from the country – both significant pieces for the health of the economy. However, further developments with Syria could be the most important factor for the US dollar. Get in touch with your trader now for the latest price for the US dollar, with plenty going on to influence its performance.
Japanese yen and Canadian dollar benefit from Syrian crisis
Elsewhere yesterday, following on from Tuesday, the markets across the globe were directly influenced by the political uncertainty surrounding Syria. Firstly, the Canadian dollar logged gains against the majority of its major trading partners resulting from a surge in the price of crude oil – Canada’s biggest export – which touched its highest level in two years. Crude oil prices are continuing to be pushed up amid fear that the Middle-Eastern situation could drive down supplies. The high oil prices also caused the Indian rupee to plummet, hitting record two-decade lows amid fears the Asian economy could be heading towards its biggest crisis since 1991. Out of the commodity-backed currencies, the Canadian dollar was the anomaly, with its peers from Australia and New Zealand hitting three-week lows. Demand for the higher-risk currencies dwindled due to general nervousness in the marketplace. For the same reason we saw the Japanese yen perform well, with demand for the safe-haven currency remaining high. Overnight we had the release of Business Confidence statistics out of New Zealand, and from Australia we had quarterly inflation data. Get in touch for live rates.