Exchange Rates Today: Pound Leaps Higher after Scottish Referendum Results

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Pound Sterling

Following the decided victory of Scottish unionists, the Pound leapt immediately higher against the majority of its currency counterparts. Initially the British asset hit a two-year high against the Euro, a 6-month high against the Australian Dollar and a two-year best against the New Zealand Dollar. While the British currency later went on to pare these gains, Sterling still looks set to close out the week in a stronger position.

US Dollar

The US Dollar strengthened against several of its rivals yesterday as the number of people filing for first time unemployment benefits in the US fell by more than anticipated. The North American currency did slide to its lowest level against the Pound for 2014 but managed to recover ahead of the publication of the US Leading Indicators.

Euro

Concerns that the European Central Bank’s Long Term Refinancing Operations might not be successful in boosting liquidity in the Eurozone left the Euro flagging yesterday. The common currency later drifted to a two-year low against the Pound thanks to Scotland voting against independence. Germany’s Producer Price index had little impact on the EUR/GBP exchange rate.

Australian Dollar

After a week of lacklustre trading, the Australian Dollar prepared to enter the weekend trending lower against several of its major peers. The Reserve Bank of Australia’s jawboning comments earlier in the week, coupled with falling commodity prices and the news that the UK will remain united left the Australian Dollar floundering at a six-month low against the Pound.

New Zealand Dollar

The GBP/NZD exchange rate rallied to a two-year high in response to the ‘No’ camp’s referendum victory. The New Zealand Dollar had staged a modest rebound earlier in the week after domestic growth figures impressed, but fluctuating dairy prices prevented the currency was consolidating gains.

Canadian Dollar

Ahead of the publication of Canada’s Consumer Price Index, the ‘Loonie’ was trending in a weaker position against the Pound and US Dollar. If CPI disappoints, upping the odds of the Bank of Canada staying dovish, the Canadian Dollar could fall further before the weekend.

South African Rand

The Rand tumbled yesterday following the South African Reserve Bank’s interest rate announcement. While the central bank left interest rates unchanged, it offered a fairly pessimistic view on South Africa’s economic outlook which pushed the Rand lower.

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

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