British Pound Falls to 1.39 Against Euro, EUR-USD Exchange Rate Gains
The Pound endured another poor day against the Euro and slipped to a low below 1.39 GBP/EUR overnight, a move largely driven by the gains for the Euro against the U.S Dollar.
EUR/USD is the most traded pair in the world and accounts for 70% of foreign exchange transactions, which means that a strong Euro against the Dollar usually translates to a strong Euro everywhere else.
The Euro Dollar exchange rate moved through 1.1250 amid renewed Dollar weakness following the FOMC minutes on Wednesday. Only one policy maker within the FOMC voted to raise interest rates in August and it seems increasingly unlikely that the Fed will look to raise interest rates next month, which was previously suggested.
A quick foreign exchange market summary before we bring you the rest of the report:
On Monday the Pound to British Pound exchange rate (GBP/GBP) converts at 1
At time of writing the pound to pound exchange rate is quoted at 1.
The live inter-bank GBP-CAD spot rate is quoted as 1.711 today.
FX markets see the pound vs australian dollar exchange rate converting at 1.909.
Today finds the pound to us dollar spot exchange rate priced at 1.253.
NB: the forex rates mentioned above, revised as of 29th Apr 2024, are inter-bank prices that will require a margin from your bank. Foreign exchange brokers can save up to 5% on international payments in comparison to the banks.
Forex Forecast: Chinese Slowdown Predicted to Delay BoE, Fed Rate Hikes: GBP, USD, AUD Conversion Rates Volatile
In fact, the recent developments in China with the devaluation of its currency may convince Fed and BoE policy makers to delay the decision to raise interest rates. The Pound initially came under pressure on Thursday following the release of the UK latest round of retail sales data for July. The report was expected to show an increase to 0.4% but came in lower-than-expected at 0.1%, which disappointed investors. Lower inflation and a stronger Pound has translated to a strong performance in retail sales over the past year but the subdued result in July following a negative figure in June and will raise concerns that the pace of consumer spending is slowing.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Gains, GBP to AUD, NZD Trends Higher
Aside from the move lower against the Euro, the Pound is looking particularly bullish elsewhere, particularly against the commodity-driven currencies. The Pound has traded through 1.57 against the U.S Dollar and has made a move to test resistance above 2.15 versus the Australian Dollar. The UK currency also hit a high close to 2.06 against the Canadian Dollar overnight and the ongoing decline in the equity market means there is a reluctance to hold these types of currencies. Oil prices continue to decline and may even slip further over the coming months.
Data Released 21st August
EU 09:00 Flash Markit C omposite PMI (August)
¬- Manufacturing / Services
U.K 09:30 PSNB Ex-Interventions (July)
U.S 14:45 Flash Markit Manufacturing PMI (August)
EU 15:00 Flash EC Consumer Confidence (August)