Exchange Rates Today: GBP/EUR Exchange Rate Trending Higher on QE Anxieties, EUR/USD Exchange Rate Soft

Published: 27 Nov at 12 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, Australia, USA, China,

Exchange Rates Today: GBP/EUR Exchange Rate Trending Higher on QE Anxieties, EUR/USD Exchange Rate Soft ahead of US Data and GBP/AUD Exchange Rate Rallies on Iron Ore Glut

The Pound Sterling to Euro (GBP/EUR) Exchange Rate Strengthens despite Mixed UK Data

Although British data produced mixed results on Wednesday, the Pound Sterling to Euro exchange rate rallied by around 0.41%. This can be attributed to dovish comments made by the European Central Bank Vice President Vitor Constancio.
The Pound Sterling to Euro exchange rate is currently trending in the region of 1.2647.

Wednesday’s British data has produced a mixed-bag of results, but the data generally errs towards negativity. UK Gross Domestic Product met with the median market forecast figures on both a yearly and quarterly basis, showing growth of 3.0% and 0.7% respectively.

However, British trade data is less satisfactory. Imports Increased from -0.3% to 1.4%, eclipsing the market consensus of a 0.7% advance. Exports, however, showed a declination of -0.4% which equalled the previous figure.
Adding to the negative UK ecostats was a poor print from the CBI Reported Sales, which softened from 31 to 27. ‘With prices under pressure and more firms adopting US-style Black Friday offers, retailers are expecting a festive boost next month and are certainly doing their best to put smiles on customers’ faces and make it easy on their pockets,’ stated Barry Williams, the CBI’s distributive trades survey chairman and Asda’s chief merchandising officer for food.

The Euro to US Dollar (EUR/USD) Exchange Rate Softens on Constancio Comments

After ECB Vice President Vitor Constancio made dovish comments in regards to quantitative easing, the Euro to US Dollar (EUR/USD) exchange rate edged lower by -0.11%. The US Dollar is holding relatively steady against its major peers, meanwhile, as traders await Durable Goods Orders data.

The Euro to US Dollar exchange rate is currently trending in the region of 1.2463.

ECB Vice President Constancio stated that quantitative easing is a real possibility in the next quarter, causing the single currency to decline against many of its most traded rivals. ‘To explore new channels of transmission of monetary policy that have worked in other countries like the U.K. and the U.S., we are aiming at increasing the size of the monetary base and our balance sheet by directly injecting money also into non-bank economic agents,’ Constancio said. The impact of buying sovereign debt would go ‘well beyond the direct effect on the yields of the purchased securities,’ he added.
As traders await several influential US data publications, the ‘Greenback’ (USD) has been subject to changes in foreign currency movement. Durable Goods Orders hold the most weighting in terms of the potential to provoke volatility, and is expected to increase from -1.1% to -0.6%.

The Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Rallies on Iron Ore Prices

After iron ore prices extended declines on Wednesday, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate strengthened by around 0.91%. Further ‘Aussie’ (AUD) declination can be attributed to anxieties regarding overvaluation and disappointing domestic data.

The Pound Sterling to Australian Dollar exchange rate is currently trending in the region of 1.8535.

Iron ore prices have continued to decline which has had a particularly detrimental effect on the world’s largest producer, Australia. ‘We remain concerned by the iron ore majors’ volume expansion strategy,’ Paul Gait, a London-based analyst at Sanford C. Bernstein Ltd., said in a note today. ‘Any recovery in prices will have to come from either a recovery in demand in China or from an acceleration in the closure rate of high cost producers.’

Further ‘Aussie’ declination can be attributed to a less-than-ideal construction data. Construction Work Done was forecast to decline from -1.2% to -1.9%, but the actual result fell to -2.2%.
As of Thursday, 27th November 2014, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.262, GBP USD exchange rate was 1.5725, GBP AUD exchange rate was 1.8453, and GBP CNY exchange rate was 9.6538.

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