The Pound Sterling (GBP) has failed to make a noticeable headway against the US Dollar (GBP/USD) or the Canadian Dollar (GBP/CAD) today, although the price of crude oil per barrel falling below the $30 mark overnight did nothing to support these latter currencies.
Bank of England (BoE) Interest Rate Decision due This Morning, Minutes Eagerly Anticipated
The first economic announcement to affect the trinity today will come from the UK, with the revelation of the BoE’s first Interest Rate Decision of the year coming out shortly. No one has predicted a rise from the current rate of 0.50%, but even a split of 2/7 policymakers may be enough to push Sterling up in its pairings.
Earlier…
The Pound Sterling (GBP) has fallen by -0.3% against the US Dollar (GBP/USD) today and has made a worse decline of -0.5% against the Canadian Dollar (GBP/CAD). This comes at a time when the price of crude oil may fall so low as to breach the $30 per barrel barrier.
Current Oil Price Rise may be Temporary Blip in Dark Future for Commodity Price
While the price of crude oil per barrel has actually risen to over $31 today, this may nonetheless be a temporary movement against the trend, with the price of the commodity currently being highly dependent on the overproduction of ‘black gold’, particularly in Middle Eastern countries. If prices were to go so low as the $10 Standard Chartered have been prophesying, it is virtually assured that the US and Canadian currencies would be in for a highly turbulent time.
Earlier…
The Pound Sterling (GBP) has fallen by -1% against the US Dollar (GBP/USD) and -0.5% against the Canadian Dollar (GBP/CAD) today, which can hardly be considered an improvement since earlier.
Possible Solutions for UK Production Problems? FT’s Giles Weighs In
The UK’s economic movement this morning was put into reverse gear by the Production results for November, so according the Chris Giles of the Financial Times, the slack needs to be taken up in the UK’s Services sector to prevent an overall growth slowdown.
Earlier…
The Pound Sterling to US Dollar (GBP/USD) exchange rate has fallen to -0.8% today while the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate has worsened by a greater amount to -1%.
US Economic Publication Provides Limited Movement So Far Today
The only impactful US release today has been the NFIB Small Business Optimism result for December, which has risen from 94.8 to 95.2.
Earlier…
The Pound Sterling to US Dollar (GBP/USD) and Pound Sterling to Canadian Dollar (GBP/CAD) exchanges rates have both deteriorated greatly today, with this being brought about by the earlier UK economic announcements.
GBP/USD, GBP/CAD Exchange Rate News: Doom and Gloom for Sterling Today after Production Results Backfire
Pound Sterling (GBP) has made little positive movement against any of its rivals today, with declines of -0.7% being seen against the US Dollar (GBP/USD), the Canadian Dollar (GBP/CAD) and the Euro (GBP/EUR). In addition, more substantial losses of -0.8% against the Israeli New Shekel (GBP/ILS) and -2.3% against the South African Rand (GBP/ZAR) have also been seen. For many investors in Sterling, these results are a dissatisfying taste of deja vu from the previous week.
The culprits behind the Pound’s losses today are the UK’s Industrial and Manufacturing Production results for November, which have declined in all fields on the year and the month. In response to the news, JP Morgan pushed their expectations for the next UK interest rate hike from November this year to May 2017.
Narrow Trending for USD and CAD Today as Commodity Prices Continue to Dive
The US Dollar (USD) has had a mixed performance so far today, having fallen by -1.3% against the South African Rand (USD/ZAR) but risen by 0.7% against Pound Sterling (USD/GBP).
The impact of the most recent news for the US economy has been unclear, with a dovish speech from Fed official Dennis Lockhart being countered by a more hawkish delivery from fellow Fed member Robert Kaplan.
The Canadian Dollar (CAD) has stayed positive today, with this positive movement likely being caused by the current instability of the US Dollar. Otherwise, the prices of both crude oil and gold have gradually been edging lower throughout the course of the day.
Among the Canadian Dollar’s gains today have been 0.2% against the US Dollar (CAD/USD) and 0.9% against Pound Sterling (CAD/GBP).
GBP, USD, CAD Exchange Rate Forecast: Carney & Fed Speeches Imminent
The near-future will bring a number of UK and US economic publications with the potential to cause currency movement. On Canada’s side, the deteriorating value of commodities is likely to be the deciding factor in the movement of the ‘Loonie’ (CAD).
The UK will have input this afternoon with Bank of England (BoE) Governor Mark Carney’s speech in Paris, along with the NIESR December GDP Estimate.
From the US, another Fed speech will be taking place tonight, this time from Bank of Richmond President Jeffrey Lacker.
Current GBP, USD, CAD Exchange Rates
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.4429, the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6932, the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was trending in the region of 2.0508, the Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate was trending in the region of 0.4883, the US Dollar to Canadian Dollar (USD/CAD) exchange rate was trending in the region of 1.4213 and the Canadian Dollar to US Dollar (CAD/USD) exchange rate was trending in the region of 0.7037 today.
Comments are closed.