Pound Higher before Carney Comments, US Dollar Volatility Expected

Published: 24 Feb at 11 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany, Greece,

Daily Currency Update

Pound Sterling
With UK data in short supply for the first half of the week, commentary from central bank officials and global economic developments will continue to drive Pound movement. If the Bank of England’s Mark Carney is hawkish today, Sterling could push higher in the hours ahead.

US Dollar
Federal Reserve Chairwoman Janet Yellen is scheduled to testify to the senate today. If the central banker adjusts her rhetoric on the subject of borrowing costs, it could have notable consequences for the ‘Greenback’. Hints that interest rates may rise sooner than currently projected would be US Dollar supportive, while signs there could be further delays would drag the currency lower.

Euro
Although this morning’s German growth report confirmed that the Eurozone’s largest economy grew at a sturdy pace in the fourth quarter of last year, the Euro failed to benefit. The common currency will remain under pressure until the Eurogroup finishes assessing the Greek reform proposals and decides whether or not to grant the nation a four-month extension to its bailout.

Australian Dollar
The Australian Dollar tracked commodities lower and closed out the local session in a broadly weaker position. A slight improvement in the ANZ Weekly Consumer Confidence index had little impact on ‘Aussie’ trading.

New Zealand Dollar
After the Reserve Bank of New Zealand lowered its inflation expectations, the New Zealand Dollar softened against the majority of its currency counterparts. The adjustment was taken as a sign that the central bank intends to leave borrowing costs on hold.

Canadian Dollar
Prior to Bank of Canada Governor Stephen Poloz delivering a speech, the Canadian Dollar dropped to a new multi-year low against the Pound. The ‘Loonie’ registered widespread declines after the price of crude oil fell back below $50 a barrel. If the BOC chief indicates that a further interest rate cut is on the horizon, further Canadian Dollar losses can be expected.

As of Tuesday, 24th February 2015, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.3631, GBP USD exchange rate was 1.5456, GBP AUD exchange rate was 1.9735, GBP NZD exchange rate was 2.0659, and GBP CAD exchange rate was 1.9315.

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