October 2014 News Archive

Both the Pound and US Dollar weakened today, ending the week with a jittery note for the British Pound to US Dollar (GBP/USD) exchange rate. Investors may be more likely to buy the pair in the coming weeks though as UK and US political uncertainties clear up. Since opening this week at the level of 1.2915, GBP/USD has been trending with...

The Pound Sterling Australian Dollar (GBP/AUD) exchange rate was left muted today, as MPs began preparations for a pre-Christmas election, leaving the pairing trading around AU$1.8795. Sterling was supported this week on increased hopes the UK will avoid crashing out of the European Union without a deal thanks to a three-month...

Despite a hawkish tone taken by the Bank of Canada (BoC) during the bank’s policy decision this week, the US Dollar to Canadian Dollar (USD/CAD) exchange rate saw some late week climbs as investors remained hungry for safe haven currencies. After opening the week at the level of 1.3088, USD/CAD saw tight movement for most of the week...

The Japanese Yen has seen mixed demand in recent weeks as risk-sentiment rises and safe haven currencies weaken. Despite this though, the British Pound to Japanese Yen (GBP/JPY) exchange rate has been weakening due to Brexit jitters. While GBP/JPY recovered from last week’s low of 145.89, the pair still slipped from 147.55 to 147.04...

Pound Bolstered by Hopes of Accelerated Brexit Process There have been two factors enabling a Pound to Australian Dollar rise today, the first being a recent statement from Michel Barnier. The EU’s Chief Brexit Negotiator, Mr Barnier has stated that the next round of talks with the UK could be scheduled in ‘[the next few] hours or...

Euro Collapses after ECB President Gives Cautious Press Conference Traders had been eagerly anticipating today’s European Central Bank (ECB) press conference, but it has backfired spectacularly and led to widespread Euro losses. The ECB left interest rates at 0% as expected, but notably cut its monthly quantitative easing (QE) limit...

The Pound Canadian Dollar exchange rate soared today on news that the UK’s GDP print beat expectations and that the Bank of Canada (BoC) decided to leave interest rates steady at 1% at its October rate meeting. Bank of Canada Proves Dovish – CAD Exchange Rates Flop The BoC decided to hold its benchmark interest rate at 1% at the...

The Pound to New Zealand Dollar exchange rate surged on Thursday, despite persistent economic and political concerns in Britain, as investors digested the latest NZ political surprise. GBP/NZD began the week trading at around 1.8514. After slipping earlier in the week, the pair shot up over two cents on Thursday and trended near its best...

Euro Outlook: Losses Possible if Catalan President Declares Independence Given the circumstances, the Euro has been faring well against the US Dollar today. The EUR USD exchange rate has been progressively rising this week, in spite of high tensions in the Spanish region of Catalonia. The actual source of the Euro’s rise today has been...

Wild Fluctuations in Pound Exchange Rates Demonstrates Current Sensitivity of GBP Traders Movement in the Pound US Dollar exchange rate has been largely negative today. While Sterling was able to record a few brief gains against the ‘Buck’, it has since dropped off. Initial gains for the Pound were triggered by the Q3 preliminary...

The Pound to New Zealand Dollar exchange rate has plummeted this afternoon following comments from UK Chancellor Philip Hammond that he would be willing to approve additional quantitative easing. Pound (GBP) New Zealand Dollar (NZD) Bludgeoned by Hammond QE Remarks After trading relativity flatly for much of the day The Pound (GBP)...

The US Dollar to Japanese Yen exchange rate rested above the key level of 104.00 throughout the weekend and the pair still trends near highs not seen since July. Higher bets of a Federal Reserve rate hike in December have carried USD/JPY higher, but the pair’s movement was mixed on Monday as comments from Fed Chairwoman Yellen weighed on...

Pound Damaged by City’s ‘Brexit’ Fears, UK Construction Stats Out Later This Week The latest movement for the Pound has been almost universally negative, owing to continued negative reactions to last Friday’s surprise ‘flash crash’ for the UK currency. Major losses have been seen against peers such as the US Dollar, while...

The Australian Dollar has been able to avoid depreciation today on the back of negative news thanks to closed US markets undermining US Dollar strength. The AUD/GBP exchange rate has advanced by around 0.7% to trend around 0.6146; near to a three-year high. Closed US Markets Buoy US Dollar despite Strong Warnings over Domestic...

The Euro US Dollar exchange rate continued to slip on Thursday after giving up recovery attempts on Wednesday, as the week’s US data continues to bolster US Dollar demand while Eurozone news fails to inspire. EUR/USD has trended below the week’s opening levels of 1.1239 for the whole week so far, and traded near 1.1185 on Thursday...

The Pound (GBP) to Canadian Dollar (CAD) exchange rate came close to a yearly low this morning as Sterling continues to struggle following the announcement over the weekend that Prime Minster Theresa may plans to trigger Article 50 of the Lisbon Treaty by the end of March 2017, starting two years of official ‘Brexit’...

Pound Sterling to Chinese Yuan (GBP/CNY) Exchange Rate sees Major Rise as Perfect Storm of Results Takes Place Following on from yesterday’s exceedingly disappointing UK inflation rate results that sent the Pound Sterling into a nosedive against the Chinese Yuan, today’s data for Sterling (the last of the week) has entirely reversed...

UK Inflation Downfall Overshadowed Pessimistic US Fed Speeches Today to Push GBPUSD Exchange Rate Down Having been at the mercy of rival movements yesterday due to a lack of economic publications, the Pound Sterling’s main economic release of the day, the UK Inflation Rate data for September, has proven to be an enormous let-down. Both...

Minor Gains recorded in USD-INR Exchange Rate Today as US Results are Thin on the Ground At a time when the future of the US economy faces increasing uncertainty due to external pressures and the ever-elusive event of a Fed interest rate hike, the US Dollar has managed to achieve a small gain against the Indian Rupee (USD-INR), reaching an...

GBP-JPY Conversion Rate Seesawed by Prior Optimism and Subsequent Disappointment over BoE Announcement A weekly high of 184.0650 has been hit today in the Pound Sterling to Japanese Yen exchange rate, although recent Sterling domestic data has not exactly been conducive to such historically high rates. Specifically, the Bank of England...

IMF’s Global Outlook Spells Disaster for Canadian Dollar (CAD), Opposite Effect had on Australian Dollar (AUD) The Canadian Dollar has fared poorly against the Australian Dollar today; this negative state has been brought on by both detrimental domestic data for the ‘Loonie’ and the more wide-reaching International Monetary Fund...

Cause for ‘Aussie’ Celebration as Markets are Bolstered by TPP Finalisation; RBA Policy may change Accordingly Having suffered through a rough patch in the AUD-GBP exchange rate last week, the Australian Dollar has achieved some much-needed relief today thanks to the agreement of 12 nations on the 5-year-in-the-making Trans-Pacific...

Pound Sterling The prospects of the Pound have not picked up this week as Monday morning saw the release of the latest UK Services PMI, which proved to be a decided disappointment. As traders had been anticipating sector expansion, at 56, the actual result of 53.3 sparked fresh fears of domestic economic contraction and prompted a general...

Weaker Canadian Dollar Good for Exporters The Canadian Dollar (CAD) exchange rate fell against almost all of its currency counterparts following the release of disappointing local growth figures. The commodity-driven currency had previously softened on the back of comments from Bank of Canada Governor Stephen Poloz. As well as stating that...

The Swiss Franc (CHF) exchange rate was broadly softer on Wednesday as investors feared the Swiss National Bank (SNB) could readjust its Euro-Franc cap. In November the SNB will be subject to a referendum which could have a serious impact on the way in which the central bank conducts fiscal policy. The proposals would see the central bank...

Although the Australian Dollar to US Dollar (AUD/USD) exchange rate has lost a considerable amount of ground over the last few months, the ‘Aussie’ has been able to stabilise a little this week. The Australian Dollar pushed back above 88 US cents on Monday as demand for the US Dollar was undermined by below-forecast US services PMI. As...

At the beginning of the week the US Dollar softened against the Pound (USD/GBP) and weakened against the Yen (USD/JPY) as below-forecast domestic data saw investors pare back their interest rate hike bets. The US Dollar came under pressure after both the Markit US Services and Composite PMI’s softened in October, with the former sliding to...

If you deal with the Pound to Euro exchange rate on a regular basis (when paying a foreign mortgage or transferring wages, for example) you’ve probably been taking a keen interest in the recent run of less-than-impressive economic reports to come out of Germany. Your foreign commitments might be in Spain or France, but as Germany is the...

According to the latest data, sales of existing US homes climbed in September, achieving their highest level in a year, after jumping by 2.4% on the month. Sales had been expected to increase by 1.0% on the month following August’s -1.8% decline. The report adds to the improving picture of the UK’s housing sector. According to industry...

Although the Eurozone appeared to have dragged itself out of the dark days of recession at the beginning of 2014, reports published over the last few months are indicating that the currency bloc’s tentative recovery could be faltering already. \r\n\r\nIf you were one of the thousands of people who took advantage of the global economic...

On Wednesday the UK published its latest batch of employment figures. They revealed that the UK Unemployment Rate softened to a six-year low of 6%, the lowest level of joblessness recorded since the global financial collapse was triggered in 2008. On the surface the results were very positive, so given that the labour market is such an...

When the global economic crisis struck in 2008, governments and financial institutions from across the world had to introduce measures to prevent complete financial collapse. Many developed nations opted to deploy the strategy of cutting interest rates to historic lows in order to reduce borrowing costs and ease conditions for consumers. In...

Planning on moving to the Great White North? Get yourself in gear because a rapid decline in building permits could initiate a house price boom; not the kind of hike you will likely enjoy in the Canadian mountains. The appeal of Canada is undeniable. Can’t decide whether to move to somewhere with sun or snow? Beaver country has you...

Australia’s agreeable climate, laid back attitude and outdoors lifestyle make it the location of choice for thousands of UK residents looking to start a new life overseas. While renting property is possibly the more sensible choice in cases of temporary relocation, if your move will be permanent you’re probably looking at buying a place...

If you’ve been living in the US but have plans to return to the UK, the current increase in the US Dollar to Pound Sterling exchange rate could leave you thousands of Pounds better off. Over the last few months the US economic recovery has stepped up a gear, with sectors from employment to housing and construction all showing signs of...

The pound fell to a 2 month low against the euro yesterday after the Office for National Statistics (ONS) reported that UK households have seen their living standards stagnate for the past four years and are spending an increasing share of their incomes on "essentials" such as fuel and housing. The ONS says households' true...

Ahead of the monthly policy decision from the Federal Open Market Committee this evening, the US dollar strengthened as all the signs are that the FOMC will keep its $85 billion a month bond buying program, commonly known as quantitative easing in place well into 2014 to support the economic recovery, particularly after the 16 day government...

The Pound Sterling found fresh support yesterday after property tracking firm Hometrack reported that average UK asking house prices rose by 0.5% in October on the back of a pick-up in demand from buyers and a decline in the supply of houses. This is the ninth straight month Hometrack have reported a rise in UK house prices. Richard...

The pound lost ground for the third day in a row against the euro ahead of the publication of UK GDP data for the third quarter of the year this morning despite better than expected UK economic data out this week. Yesterday it was the turn of better than expected UK housing and car production data. Independent estate agent network Move...

The pound fell for the second day in a row against the single currency despite the release of the minutes from the latest Bank of England policy meeting which showed that all nine members of the Monetary Policy Committee (MPC) decided unanimously to maintain the benchmark interest rate at 0.5%and keep the level of the stimulus program...

The focus of the currency markets remains firmly fixed on the US dollar after a disappointing set of US non-farm payroll data, the key unemployment data was published yesterday reinforcing the view amongst the majority of analysts that the US Federal Reserve will hold back into at least the first quarter of 2014 before tapering its $85...

The pound opened the trading week largely unchanged ahead of four straight days of UK economic data. In a quiet news day, the interview by Ben Broadbent, one of the nine members of the Bank of England’s Monetary Policy Committee raised a stir. Broadbent sees UK inflation heading back below the Bank’s 3% target level Broadbent also...

After the decision from Washington on Wednesday night allowing the US government to return to work from its first shutdown in 17 years and extend the debt ceiling until February 2014, sentiment was further boosted by overnight data from China which exceeded expectations. The Chinese economy saw Gross domestic product (GDP) annual growth...

They left it to the last possible moment but overnight US Senators reached an agreement on a bi-partisan proposal to end the first US government shut-down for 17 years and temporarily suspend the country's debt ceiling with House Republicans indicating that they will not oppose its passage in the lower chamber. The US government will now be...

The pound found some support yesterday after the publication of the latest UK inflation data showed that the rate of inflation in the UK remained steady but did not continue to ease as predicted by analysts. The Consumer Price Index (CPI) measure of inflation remained unchanged at 2.7% in September against the expected reading of...

The pound picked up a small fraction of the ground lost over the course of last week in a quiet start to the trading week as the markets remain cautious ahead of the US debt ceiling deadline of 17 October. In the only significant piece of UK economic data, the Ernst & Young ITEM club reported that they are making an upward revision of...

The pound has now fallen to a 6 week low against the euro on the publication of mixed UK construction output. The data from the Office for National Statistics (ONS) showed a decline activity from July to August but activity is still at a higher level than in the same period last year. Of interest, new housing starts jumped by 16.7% while...

For the second day in a row, poor UK economic data hurt the pound, sending it to a 5 week low against the euro. On Tuesday, the British Retail Consortium (BRC) reported worse than expected UK retail sales data for the second month in a row. Yesterday, the Office for National Statistics (ONS) reported a surprise drop in UK industrial...

The pound initially fell heavily yesterday morning after data released from the British Retail Consortium (BRC) showed that prices in UK shops fell for the fifth month in a row last month as retailers offered bargains to get shoppers through their doors. The BRC data also showed weaker than expected September retail sales figures following...

The US dollar remains under pressure despite a quiet start to the trading week as the US government shutdown enters its second week and fears grow about a potential default on 17 October if the US fails to lift its debt ceiling. The Secretary of the US Treasury, Jack Lew was busy over the weekend. Amongst other appearances, he told CNN´s...

The pound fell against the majority of the 16 most actively traded currencies yesterday after worse than expected UK construction sector data. The Markit/CIPS construction purchasing managers’ index (PMI) fell from a 59.1 level registered in August to 58.9 in September. The August data represented a six-year high. The September data...

There was a muted response from the markets yesterday to the US government shutown, the first for 17 years, yesterday with the dollar slowing falling to a new 8 month low against the pound. Data wise, the dollar found some support from the release by the data release from the Institute for Supply Management which reported that its...

The Pound Sterling reached a new nine month high against the Euro yesterday on the back of better than expected data and the worsening political situation in Italy. Property analysis firm Hometrack reported yesterday that UK house prices in England and Wales rose by another 0.5% month-on-month in September and are now up by 2.4% since...

The euro made gains across the board yesterday after better than expected news in Greece, Spain and Italy bolstered sentiment in the euro zone. The markets remain quieter than normal as New York struggles in the aftermath of |Hurricane Sandy. In Greece, Prime Minister Antonis Samaras announced that a deal has been reached with the so...

The effects of Hurricane Sandy are been felt in the worldwide financial markets with trading volumes sharply down as the New York exchange will remain closed at least until tomorrow and safe haven demand on the increase. Hurricane Sandy produced 85 mile-per-hour winds in and a 13 ft tidal wave that tore into New York, paralysing capital...

The pound obtained a major boost yesterday after the publication of much better than expected UK gross domestic product (GDP). The Office for National Statistics (ONS) reported that in the three months to September, UK GDP rose by a full 1%, the strongest reading since late 2007. It also means that the UK economy exited from its...

The pound enjoyed its biggest one day rise in a month against the euro yesterday after Prime Minister David Cameron promised “the good news will keep coming” during his weekly Prime Ministers Questions in Parliament. Although aides immediately refuted claims that the PM had broken the law by divulging sensitive economic data ahead of the...

The markets have lurched back into ‘risk appetite’ mode after better than expected Chinese manufacturing data was published late on Tuesday evening. The HSBC purchasing managers' index (PMI) continued to improve for a second month in a row and is now at its best single reading of the last three months. "October's flash PMI...

Concerns over Spain’s debt and the state of the world’s economy saw the euro, the yen and the Australian dollar fall against the US dollar in recent trading. A loss of appetite for risk has seen investors return to the greenback. Concerns over the state of the global economy have been fuelled by data coming out of the US that indicates...

A very quiet start to the trading week saw the pound continue to lose ground against the euro, at one point reaching a 5 month low against the single currency but continue to make modest gains against the US dollar. In a light news day, the euro strengthened against the majority of the 16 most actively traded currencies after the results...

Disappointing economic data coming out of New Zealand has seen the NZ dollar slip against the US dollar. The currency hit a low of 0.8139 on Tuesday before clawing back to 0.8158. New Zealand’s consumer price inflation for the third quarter was 0.03 per cent according to official figures, which is the same as the previous quarter....

Although the euro remains down against the dollar, the single currency has been able to claw itself back slightly. Ongoing problems in countries including Greece and Spain have kept the euro under pressure and an announcement that global economic growth remains sluggish has not helped matters. In a meeting with the European Parliament,...

The Australian dollar has fallen against almost every other major currency around the globe after Tuesday’s decision by the Reserve Bank of Australia to reduce its cash rate to 3.5 per cent, a drop of 25 basis points. This is the lowest point it has been in three years and the central bank has not ruled out further easing. Reasons given...

The euro dropped to a three-week trough against the dollar at the beginning of the week after an audit of Spanish banks was unable to ease concerns over whether the country was set to request a bailout to bolster its embattled economy. The independent audit published on Friday revealed that Spain’s banking sector would require 59.3bn...