Exchange Rates Today: Pound Edges Higher against the Euro

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Pound Sterling

The Pound edged higher against the Euro and other peers despite the release of data showing a decline in UK Consumer Confidence in August. According to the GfK index, confidence fell from a reading of 1 to -1. A separate report also showed that UK house prices fell more than expected in September. The currency managed to hold onto gains against several of its rivals as investors looked ahead to the latest Current Account and GDP Growth Rate data.

US Dollar

The US Dollar pared its run of gains as investors deemed that the currency’s rally had been too rapid. Also weighing upon the ‘Greenback’ was Monday’s mixed bag of economic data releases. Pending Home Sales fell sharply whilst Personal Spending increased above expectations. The currency is likely to see movement later in the session depending on the result of the US CB Consumer Confidence report.

Euro

The Euro is weaker against the Pound and other counterparts as the market awaits the release of the latest Eurozone Inflation and Unemployment data. If inflation comes in below expectations then we can expect the Euro to fall further as pressure will increase on the European Central Bank to introduce a proper quantitative easing programme. The region’s unemployment rate is likely to remain high at 11.5% but any rise in that area could also cause Euro losses.

Australian Dollar

The ‘Aussie’ inched higher against the US Dollar overnight but gains were muted. The cause of the ‘Aussie’s’ rise was that the market deemed the US Dollar’s recent run of gains overdone. The currency was weaker against the Pound however as concerns over poor Chinese data and declining commodity prices continued to weigh.

New Zealand Dollar

The New Zealand Dollar softened against the Pound after the ANZ business confidence index fell to a more than two-year low of 13.4 in September from a reading of 24.4 the previous month. A separate report showed that building consents stagnated in July.

Canadian Dollar

The ‘Loonie’ was softer against the Pound as the commodity-driven currency was weighed upon by news that crude oil was heading for its largest quarterly decline in more than two years. Prices fell as the market speculated that rising crude production outside the Middle East would prevent a reduction in supply because of the conflict in Iraq and Syria.

South African Rand

The Rand regained some ground against the Pound and US Dollar as traders settled in to wait for the publication of the latest domestic Balance of Trade data. The currency managed to shrug off the impact of soft Chinese data.

Disclaimer: This update is provided by TorFX, a leading foreign exchange broker, its content is authorised for reuse by affiliates.

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