Currency Round-up
Jan 29th 2015, 8:26 am
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Currency Round-up
Current Rates:
GBPAUD - 1.93
GBPNZD - 2.07
GBPUSD - 1.51
GBPEUR - 1.34
GBPCAD - 1.895
GBP made gains across the board throughout Wednesday as talks of Sterling being a safe-haven currency continues. Traders/Investors were happier to keep their money in Sterling as opposed to nearly all of its counterparts. Whilst, broadly speaking, the UK pound is performing well we can't help but look towards the election period (c.100 days to go) where the pound may fall out of favour due to the uncertainty.
The Euro experience another difficult day. The anti-austerity government, Syriza, with PM Tsipras at the helm has left markets scared that Greece may default on its debt and even turn to its own currency. The uncertainty over what PM Tsipras plan involves is sending investors running and until it is clear then this will continue. Since Sunday, Greek banks have seen 23% of its share value wiped off.
The USD spent most of Wednesday waiting on the Federal Reserve's interest rate decision and the subsequent meeting later that day. Nothing really happened. The interest rate was kept on hold at 0.25% but Janet Yellen (Federal Reserve Chair) did used the terminology of 'patience' in her speech. Markets have been anticipating a rate rise in the middle of this year and that feeling remains after last night meeting. The USD strengthened after the meeting.
Following the Canadian Central Bank's surprise interest rate cut last week, the SGD, NZD and AUD seen to be anticipating a similar move. The Canadian's said the move was because of lowering oil prices and an attempt at combating inevitable disinflation. As the CAD/AUD/NZD are commodity currencies ( a currency that depends heavily on export of their raw materials) their currency is subject to a lot of volatility due to the behaviour of global economic risk.
If I have missed a currency that you would like some information on, please feel free to let me know and I will post an update.
Have a great day.
George
GBPAUD - 1.93
GBPNZD - 2.07
GBPUSD - 1.51
GBPEUR - 1.34
GBPCAD - 1.895
GBP made gains across the board throughout Wednesday as talks of Sterling being a safe-haven currency continues. Traders/Investors were happier to keep their money in Sterling as opposed to nearly all of its counterparts. Whilst, broadly speaking, the UK pound is performing well we can't help but look towards the election period (c.100 days to go) where the pound may fall out of favour due to the uncertainty.
The Euro experience another difficult day. The anti-austerity government, Syriza, with PM Tsipras at the helm has left markets scared that Greece may default on its debt and even turn to its own currency. The uncertainty over what PM Tsipras plan involves is sending investors running and until it is clear then this will continue. Since Sunday, Greek banks have seen 23% of its share value wiped off.
The USD spent most of Wednesday waiting on the Federal Reserve's interest rate decision and the subsequent meeting later that day. Nothing really happened. The interest rate was kept on hold at 0.25% but Janet Yellen (Federal Reserve Chair) did used the terminology of 'patience' in her speech. Markets have been anticipating a rate rise in the middle of this year and that feeling remains after last night meeting. The USD strengthened after the meeting.
Following the Canadian Central Bank's surprise interest rate cut last week, the SGD, NZD and AUD seen to be anticipating a similar move. The Canadian's said the move was because of lowering oil prices and an attempt at combating inevitable disinflation. As the CAD/AUD/NZD are commodity currencies ( a currency that depends heavily on export of their raw materials) their currency is subject to a lot of volatility due to the behaviour of global economic risk.
If I have missed a currency that you would like some information on, please feel free to let me know and I will post an update.
Have a great day.
George
