Pound Sterling (GBP) has trended in a tight range against the Australian Dollar (GBP/AUD) today but has seen an improved 0.3% against the New Zealand Dollar (GBP/NZD). A potential cause has been what can only be interpreted as a bleak message from Financial Policy Committee member Adair Turner.
Nothing Higher than 2% UK Interest Rate Figure Until 2020, says Adair
While Turner’s statement mainly focused on the rising risks of peer-to-peer lending, the economist also forecast that given the current conditions, the UK interest rate may not pass 2% by 2020. While this is obviously a highly injurious statement for some, those who would be disadvantaged by such a rate hike may have reacted with jubilation to such a prediction, given the 4 years of breathing room it would potentially give them.
Earlier…
The Pound Sterling to Australian Dollar (GBP/AUD) and Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rates have both been poor today, with respective movements being a loss and a fractional gain.
GBP/AUD, GBP/NZD Exchange Rate News: Sterling Softens on Weak Production Stats
Pound Sterling (GBP) has seesawed wildly today, mainly on account of the morning’s UK data showing a dispiriting decline in output.
Both the manufacturing and industrial production results for December have either turned or remained negative on the year, something that has done nothing for the Pound’s appeal today.
Sterling gains have included 0.5% against the Euro (GBP/EUR) and 0.6% against the Czech Koruna (GBP/CZK), while losses have been made up of -0.3% against the Australian Dollar (GBP/AUD), -0.4% against the Norwegian Krone (GBP/NOK) and -0.9% against the South African Rand (GBP/ZAR).
Australian Dollar (AUD) Rises on Domestic Input while New Zealand Dollar (NZD) Stays Stable
On the whole, the Australian Dollar (AUD) has advanced against the competition today, having posted gains of 0.4% against the New Zealand Dollar (AUD/NZD) and 0.5% against Pound Sterling (AUD/GBP). Some of the reasons behind these gains have been the earlier January HIA new home sales and February Westpac consumer confidence results, both of which have risen out of negative ranges.
On a similar note, the New Zealand Dollar (NZD) has risen against all but the ‘Aussie’ today, having printed a minor gain against Pound Sterling (NZD/GBP) and a greater 0.25% against the Euro (NZD/EUR).
GBP, AUD, NZD Exchange Rate Forecast: Fed News Today, ‘Aussie’ and ‘Kiwi’ Ecostats Later On
With no more high impact UK data out until tomorrow morning, it falls to the US to potentially generate movement for the GBP, AUD and NZD exchange rates, along with later releases from New Zealand and Australia.
The US contribution will be the testimony of Fed Chair Janet Yellen to the House Financial Services Committee, a discourse which may touch on the timing of another US interest rate hike.
From New Zealand tonight will come the January Business NZ performance of manufacturing index, while Australia will put forward the February consumer inflation expectation; forecasts have not been made for the outcome of either report.
Current GBP, AUD, NZD Exchange Rates
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.0389, the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.4904, the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending in the region of 2.1760, the New Zealand Dollar to Pound Sterling (NZD/GBP) exchange rate was trending in the region of 0.4595, the Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate was trending in the region of 1.0675 and the New Zealand Dollar to Australian Dollar (NZD/AUD) exchange rate was trending in the region of 0.9370 today.
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