Exchange Rate Outlook: Sterling has made some fractional gains


Pound Sterling (GBP)

Sterling has made some fractional gains against most of its major peers this morning after a disappointing run last week.

Friday saw the Pound experience its seventh weekly loss against the US Dollar as trader focus surrounded the bullish ‘Greenback’. The Pound notched up some slight gains later in the day in response to a dovish statement from Federal Reserve Chair Janet Yellen.

With no domestic data to provoke significant change the Pound has made steady gains over the weekend.

US Dollar (USD)

Whilst the Pound to US Dollar exchange rate has strengthened a little, the ‘Greenback’ (USD) is still holding firm against most of its major peers.

Yesterday saw the Dollar rise to its highest level in almost a year versus the Euro. Despite the soft speech given by Fed Chair Janet Yellen; speculation for an interest rate hike in the near future has gathered momentum after a week of positive domestic data results.

The Euro (EUR)

Yesterday the Euro extended losses against most of the majors after some poor results from German domestic data.

German IFO Business Climate fell below forecast having dropped from 108.0 to 106.3. German IFO Current Assessment also failed to reach the forecast target declining from 112.9 to 111.1. Three was certainly not a magic number for the Euro as a third German domestic data result failed to impress: the German IFO Expectations data also showed unwanted declination from 103.4 to 101.7.

Australian Dollar (AUD)

With very little domestic data to gauge movement the Australian Dollar has continued to feel the effect of last week’s poor Chinese manufacturing data.

The Australian Dollar has been affected by the bullish US Dollar. The ‘Aussie’ (AUD) is likely to continue to fall versus the US Dollar as US interest rate hike speculation mounts.

New Zealand Dollar (NZD)

The New Zealand Dollar has continued its bearish run from last week having seen some less-than-impressive domestic data results this morning.

Both the New Zealand Balance (YTD) and Trade Balance failed to reach expectations falling below forecast figures. The Exports and Imports data also proved to be below the anticipated figures.

Canadian Dollar (CAD)

Most of last Friday’s Canadian domestic data left much to be desired as the majority of the data releases fell below forecast figures.

With little data to provoke significant change the Canadian Dollar has continued to soften versus most of its major peers. The bullish US Dollar has gone some way to elongating the ‘Loonie’ (CAD) losses.

South African Rand (ZAR)

The South African Rand is holding reasonably steady this morning ahead of the vital Gross Domestic Product data due for release later today.

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