Weak GBP Allows AUD, NZD to Advance
A bearish Pound Sterling has enabled the Australian Dollar and New Zealand Dollar to make advances, despite being weak overall. Speculation over the talks in Brussels is currently keeping the Pound soft, helped by the imminent release of UK public sector borrowing figures.
Yesterday…
After a shaky start, Pound Sterling (GBP) is now trending bullishly as news continues to pour in from the EU summit in Brussels. The fact that key European officials have voiced their confidence in the likelihood of a deal being secured has managed to overpower the strong negative sentiment also being reported. The Australian Dollar (AUD) and New Zealand Dollar (NZD), weakened by domestic data, have plunged into negative territory.
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Charges up: Australian Unemployment on the Rise
Pound Sterling has been strengthened as leaders from the 28 EU member states meet in Brussels to discuss reforms to the UK’s membership. While the suggestion of poor performance and dissenting nations had originally weakened the Pound, the fact that senior European officials have expressed confidence in a mutually beneficial resolution has seen the Pound trend bullishly. Chief among the positive news were comments from Jean-Claude Juncker, President of the European Commission, who told a press confidence that he was confident of a deal and the UK’s place in the European Union.
Key UK public borrowing figures due out tomorrow could end a Pound Sterling rally if they print poorly, as Chancellor George Osborne is running out of time in which to balance the budget if he intends to cut the deficit to his target rate of £68.9.
Australian unemployment unexpectedly rose in January, helping Pound Sterling to push the Australian Dollar deep into negative territory. A -40.6k fall in the number of full time roles saw the Unemployment Rate rise from 5.8% to 6%, with the overall Employment Change index showing a net job loss of -7,900 positions. A speech by the Reserve Bank of Australia (RBA) Assistant Governor Malcolm Edey has lent the ‘Aussie’ (AUD) some strength after telling investors that they shouldn’t focus too much on worsening global conditions, with the official claiming that domestic conditions are strong.
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Strong Despite Steady New Zealand Confidence Scores
The ANZ Consumer Confidence Index for February has fallen, slipping from 121.4 to 119.7, representing a decline of -1.4% after a 2.3% rise last month, although the final figure shows that sentiment remains overwhelmingly positive. Once seasonal factors are removed, confidence is unchanged for the third month, with a net 9% of consumers feeling better off financially than a year ago and a net 40% stating that now is a good time to purchase a major household item. There is no New Zealand data due out for the rest of the week, but US data due today and tomorrow could strengthen or weaken the ‘Kiwi’ (NZD).
Current GBP, AUD, NZD Conversion Rates
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trading in the region of 2.0066, while the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is currently trending around 0.4982.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trading in the region of 2.1681, while the New Zealand Dollar to Pound Sterling (NZD/GBP) exchange rate is currently trending around 0.4611.
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