The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate softened by around -0.27% on Friday.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate declined by around -0.30%.
After British economic data printed disappointingly, the Pound slumped versus many of its most traded currency competitors. Additional declination is as a result of ongoing political uncertainties as we draw nearer to a general election.
The Australian Dollar, meanwhile, strengthened versus many of its major peers thanks to positive data. The high-yielding ‘Aussie’ (AUD) also gained support thanks to Greece’s programme for debt repayment gaining approval from European officials.
Trader risk-appetite also saw ‘Kiwi’ (NZD) gains. Positive domestic data added to the New Zealand Dollar’s appreciation.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 1.9684.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 2.0378.
Pound Sterling (GBP) Exchange Rate Softens ahead of General Election
With the UK Independence Party wanting a swift exit from the European Union, and with the Tories offering a Brexit referendum if they win, mounting political uncertainties is seeing dampened demand for the British asset.
Additional losses are as a result of poor domestic data publications. The Consumer Confidence Survey was forecast to increase from 1 to 2, but the actual result only held at 1. Also, the Lloyds Business Barometer declined from 52 to 45.
Australian Dollar (AUD) Exchange Rate Gains on Market Sentiment
Now that Greece’s bailout extension and programme for debt repayment has been approved, trader risk-appetite grew significantly. This has seen heightened demand for high-yielding assets despite oil prices continuing to cool.
Australian data also printed positively which has aided the ‘Aussie’ uptrend. Year-on-year Private Sector Credit advanced by 6.2% in January, eclipsing the median market forecast of a rise by 6.0%. On a monthly basis, January’s Private Sector Credit equalled the market consensus of a 0.5% growth.
New Zealand Dollar (NZD) Exchange Rate Ticks Higher on Business Confidence
As a high-yielding, risk-correlated currency, the ‘Kiwi’ also advanced thanks to massively improved trader risk sentiment.
Positive data has seen the New Zealand Dollar maintain its advance against many of its major peers. Business Confidence climbed from 30.4 to 34.4 in February. Activity Outlook rose from 37.3 to 40.9 but Money Supply dropped a little from 6.3% to 6.2%.
Pound Sterling to Australian Dollar and New Zealand Dollar (GBP/AUD/NZD) Exchange Rate Forecast to Hold Losses
With the forthcoming general election weighing on demand for the Pound, and with trader risk appetite seeing increased demand for the South Pacific assets, the Pound Sterling to Australian Dollar and New Zealand Dollar (GBP/AUD/NZD) exchange rate is likely to hold losses for the remainder of Friday’s trade.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending within the region of 1.9660 to 1.9830.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending within the region of 2.0356 and 2.0481.
