Exchange Rate News - Pound Fluctuates after Services PMI, US Dollar Struggles

Published: 6 May at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, France, Germany, Greece,

Pound Sterling
Although the UK general election continues to pile pressure on the Pound, the British currency experienced movement on Wednesday as the UK Services PMI advanced to 59.5 in April, defying forecasts for a reading of 58.5. The eight-month high reading saw Sterling shift against peers like the Euro and US Dollar.

Euro
With Greece managing to make its latest debt repayment to the International Monetary Fund (IMF), default concerns eased and the common currency strengthened against peers like the Pound. Although Germany’s final Services and Composite PMI’s for April were negatively revised, the indexes for France and the Eurozone as a whole were positively adjusted and also lent the Euro support. Today’s Eurozone Retail Sales numbers could have an impact on Euro trading as the session continues.

US Dollar
With the US trade deficit unexpectedly widening to the most since the onset of the global financial crisis in 2008, the US Dollar posted widespread losses. Declines were a little limited as the ISM Non-Manufacturing Composite index showed improvement, but predictions that the trade data will prevent the Fed from increasing interest rates continue to keep the ‘Greenback’ under pressure.

Australian Dollar
Demand for the ‘Aussie’ increased as the US Dollar softened in response to concerning US trade data. Further Australian Dollar gains were accrued as a result of an improvement in China’s HSBC Services PMI. The services measure rose from 52.3 to 52.9 in April.

New Zealand Dollar
Below-forecast domestic employment figures weighed on the New Zealand Dollar overnight and the currency closed out the local session in a broadly weaker position. The New Zealand economy was shown to have added fewer positions than forecast, and as the participation rate also increased New Zealand’s unemployment rate came in at 5.8% rather than the 5.5% anticipated.

Canadian Dollar
Soft Canadian International Merchandise trade data failed to limit demand for the Canadian Dollar on Tuesday as climbing oil prices pushed the ‘Loonie’ higher. The poor trade data from the US also saw investors ditch the ‘Greenback’ and turn to the Canadian Dollar. In the hours ahead Canada’s Ivey Purchasing Managers Index could prompt further movement.
As of Wednesday, 6th May 2015, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.3436, GBP USD exchange rate was 1.5241, GBP AUD exchange rate was 1.9124, GBP NZD exchange rate was 2.0343, GBP CAD exchange rate was 1.8348, and GBP CNY exchange rate was 9.4501.

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