Exchange Rates Today: Pound Remains Under Pressure

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Pound Sterling

The Pound remained under pressure against the US Dollar for a seventh day in a row after Bank of England policy maker Ben Broadbent said that the UK’s economic recovery may not be strong enough to justify an interest rate increase. Sterling could see further movement if the session’s latest Markit/CIPS Services PMI data comes in strongly.

US Dollar

The US Dollar made gains against the Pound and other peers as investors increased their expectations that Friday’s set of government data will show that US employers created the largest number of jobs in three months in September. Investors expect that the latest U.S. nonfarm payrolls report will show that the economy added more than 200,000 jobs in August. The latest US Services PMI and ISM Non-Manufacturing PMI data is also due for release.

Euro

The Euro advanced against all of its major rivals after the European Central Bank failed to provide details on the size of its planned asset-purchasing programme. The lack of detail caused economists to reduce their bets that the measures will be enough to expand the central bank’s balance sheet to the extent where it would send the currency lower. The currency could fall as the session progresses if the latest Eurozone Composite PMI data comes in below forecasts. PMI data is also due for release from a number of Eurozone nations.

Australian Dollar

The ‘Aussie’ held onto its gains against the softened Pound but declined against the US Dollar after data showed that Australia’s Service sector activity contracted by more than forecast. The September AIGroup services index fell 4 points to 45.4, dashing hopes for a move higher into expansion territory from 49.4 in the last reading. Sentiment towards the currency was knocked due to concerns over the pro-democracy protests in Hong Kong and as the Australian Parliament voted in favour of Australian fighter jets to join military action against the Islamic State in Iraq.

New Zealand Dollar

The New Zealand Dollar advanced against a number of peers as it followed the Euro higher following the ECB press conference. Movement for the currency is likely to be muted for the rest of the session as traders await the release of US Non-Farm Payrolls data.

Canadian Dollar

The ‘Loonie’ held onto gains against the Pound after it found support from rising oil and metal prices. The value of crude oil rose from a 17-month low of 90 cents to increase to 91 cents. The commodity is Canada’s most traded export.

South African Rand

The Rand fell against the US Dollar as flagging consumer confidence added to mounting economic concerns, while US payrolls later in the session could provide fresh direction. Consumer confidence dropped by five points to a reading of -1. The disappointing data added to an earlier report which showed that the nation’s trade deficit rose sharply.

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

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