Exchange Rates Today: Sterling Surges Back Above 1.26


Pound Sterling

The Pound surged back above the 1.26 level against the Euro on Thursday due to the European Central Bank’s (ECB) surprise decision to cut interest rates to a new record low of 0.05%. Against the US Dollar, the UK currency declined to its lowest level since November last year. With no UK centric data due for publication on Friday the Pound is likely to see movement because of Eurozone and US data.

US Dollar

The US Dollar advanced against all of its major peers following the publication of positive economic data. Payroll processor ADP reported that its nonfarm payrolls report showed that the private sector added 204,000 jobs in August, missing expectations for jobs growth of 220,000, but the nation’s ISM non-manufacturing gauge smashed expectations. Investor attention will now be focused on the release of nonfarm payrolls data. A strong figure will further support the ‘Greenback’.


The Euro declined to its lowest level in 14-months after the European Central Bank unexpectedly cut its interest rate to record low of 0.05% and announced the introduction of additional stimulus measures. The ECB also cut its forecast for growth this year to 0.9% down from 1.0% previously.

Australian Dollar

The ‘Aussie’ was holding at high levels against the US Dollar, Euro and other major peers even as a report showed that the price of iron ore fell to a fresh five-year low. The Australian Dollar advanced as investors sought out higher yielding assets as Australia’s AAA-credit rating and comparatively high interest rates make the nation an attractive place to invest.

New Zealand Dollar

The New Zealand Dollar advanced to its best level in six-weeks against the Euro after the ECB surprised markets by cutting interest rates to a new record low. Like its Australian relation the ‘Kiwi’ was supported by increased demand as investors sought higher yields elsewhere. Further gains were restrained however as investors turned their attention to New Zealand’s upcoming general election on September 20.

Canadian Dollar

The ‘Loonie’ advanced against its major peers on Thursday after data showed that Canada’s trade surplus widened C$2.58 billion in July, up from the preceding month’s figure of C$1.83 billion. The figure was the largest surplus recorded since October 2008.
South African Rand

The South African Rand barely moved against the US Dollar as Friday began and the currency took direction from the Euro, which took a breather following a plunge the previous session. The Rand will likely trade within its recent ranges until later in the afternoon when the United States releases non-farm payrolls 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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