2016 had a volatile start for the Australian Dollar (AUD), New Zealand Dollar (NZD) and Canadian Dollar (CAD) which have been impacted by stock market turmoil
Trading on the Pound Sterling (GBP) has remained generally weaker this week as dovish data weighs on the odds of the Bank of England (BoE) opting to raise interest rates sooner rather than later.
Nevertheless the Australian Dollar (AUD), New Zealand Dollar (NZD) and Canadian Dollar (CAD) have all experienced a decided downturn on the back of increased trader risk aversion, prompted by Chinese stock market volatility on Monday.
The Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate has been struggling to stage a New Year rally as geopolitical tensions in the Middle East bolstered the value of oil, albeit temporarily.
Here are the latest CAD exchange rates for your reference:
On Thursday the Pound to British Pound exchange rate (GBP/GBP) converts at 1
FX markets see the pound vs pound exchange rate converting at 1.
The live inter-bank GBP-AUD spot rate is quoted as 1.933 today.
Today finds the pound to new zealand dollar spot exchange rate priced at 2.104.
Please note: the FX rates above, updated 18th Apr 2024, will have a commission applied by your typical high street bank. Currency brokers specialise in these type of foreign currency transactions and can save you up to 5% on international payments compared to the banks.
Some measure of confidence has returned to the Pound on Tuesday morning after the latest UK Construction PMI showed a significant jump in sector expansion, rising from 55.3 to 57.8.
This more positive result somewhat countered the negative impact of a less-than-ideal British Manufacturing PMI, suggesting that the nation’s fourth quarter Gross Domestic Product might not be so adversely affected as previously thought.
However, the Pound remains fundamentally weak against its commodity-correlated rivals, as Jane Foley of Rabobank notes;
’Slowing growth combined with weak inflation suggests the BoE is likely to maintain a cautious approach to interest rate policy.’
Sending large amounts of money abroad? Did you know you could save compared to using the high street banks? Get a free guide and start a chat with our team of foreign exchange experts.
With an imminent rate hike looking less likely and the upcoming EU membership referendum set to weigh heavily on the outlook of Pound Sterling, the currency may well remain in more bearish territory over the coming months.
Canadian Dollar Exchange Rates Make Gains despite Oil Price Volatility
Despite the fact that Brent crude staged a strong rally on Monday morning, as the escalating diplomatic conflict between Saudi Arabia and Iran led to suggestions of a diminished global supply glut, this ultimately proved short-lived.
As circuit breakers had triggered to bring an early halt to trading on the Chinese stock markets following a 7% dip, an atmosphere of risk aversion prevented the Canadian Dollar from particularly advancing, with gains in oil prices gradually petering out.
Despite economic growth in both China and the US having contracted at the close of 2015, dampening the appeal of higher-risk assets, the CAD/GBP exchange rate has nevertheless been making gains on Tuesday.
AUD/CAD Exchange Rate Update: PBOC Stock Intervention Helps to Boost Australian Dollar ahead of Services PMI
Having seen a significant slump at the start of the week in response to the latest signs of Chinese weakness the Australian Dollar has staged something of a recovery on Tuesday morning, as pundits buy back into the antipodean currency thanks to speculation regarding an improved Services PMI.
After the People’s Bank of China (PBOC) intervened to prop up stocks base metal prices have seen a marked improvement today, with copper in particular staging its largest increase in a fortnight.
While this turnaround has boosted the appeal of the Australian Dollar the still fragile nature of the global economy has dampened demand.
CAD to NZD Exchange Rate Today: New Zealand Dollar Bearish as Pundits Await Dairy Auction Data
Demand for the New Zealand Dollar, on the other hand, has slumped sharply in anticipation of the day’s GlobalDairyTrade auction, with investors cautious that milk solid prices could return to negative territory in the first session of 2016.
With little in the way of domestic data to distract from the more worrying global picture, the NZD has continued to weaken across the board in spite of today’s PBOC stock intervention.
As the strengthening US Dollar (USD) continues to put pressure on the softened New Zealand Dollar the GBP/NZD exchange rate is likely to remain on an uptrend