Exchange Rates Today: UK Economy Worries set to Weigh on Sterling

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Pound Sterling

The Pound briefly advanced back above the 1.27 level against the Euro as concerns over the faltering Eurozone economy weighed heavily upon the single currency. Sterling is likely to see mixed trading as worries over a slowdown in the UK economy weigh. With a lack of market moving domestic data and with the US and Canadian markets closed for national holidays, we can expect muted trading throughout the session.

US Dollar

The US Dollar firmed against most of its major peers as concerns build over the state of the global economy. The ‘Greenback’ slumped to its lowest level in four months against the Japanese Yen as investors flocked to the safe-haven currency. Federal Reserve officials also warned that a global slowdown could delay an interest rate hike.

Euro

The Euro slumped against the majority of its peers as the markets grow increasingly concerned over the Eurozone economy. Poor data out of Germany has intensified worries that the nation is heading towards a recession and the wider region is heading towards a period of deflation.

Australian Dollar

The ‘Aussie’ managed to rally against the US Dollar and other rivals after it found support from a stronger than forecast trade report from China. China’s trade balance showed that September exports rose by 15.3%, above the 11.8% expected and imports increased 7.0%, above the 2.7% decline, taking the trade balance to a surplus of $31 billion, lower than the $41 billion forecast.

New Zealand Dollar

The New Zealand Dollar followed its ‘Aussie’ relation higher due to the release of the positive Chinese data. Geopolitical worries and concerns over the wider global economy are expected to restrain further gains.

Canadian Dollar

The ‘Loonie’ was softer on the back of concerns over the global economy. The currency is likely to experience muted trading due to the US market being closed for the Columbus Day holiday and the Canadian market is closed for the Thanksgiving Day celebration.

South African Rand

The Rand managed to recover some ground against the Pound and other peers due to the stronger than forecast trade data out of China. The currency is likely to continue to remain under pressure however, as risk aversion dominated market sentiment.

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

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