The Pound has fallen against the majority of its most traded peers after a gauge of UK economic data showed that recent data releases are falling short of economist expectations, casting doubt on the UK economic recovery and weakening demand for the currency.
Against the Euro, Sterling fell below the key 1.20 level and slid below 1.64 against the US Dollar. Against the commodity based currencies of the Australian, New Zealand and Canadian Dollar, Sterling declined by more than 1% as those currencies gained on expectations that the US Federal Reserve will refrain from further tapering of its monetary easing programme in the wake of last week’s weaker-than-expected US jobs data.
“We’re seeing a squaring of some of the market’s favoured positions, which included sterling doing relatively well,” said Paul Robson, a senior foreign-exchange strategist at Royal Bank of Scotland Group Plc in London. “U.K. data are looking a little bit softer than they were at the end of 2013 but the outlook still looks relatively favourable.”
The index compiled by Citigroup fell following a recent string of economic data releases have failed to hit forecasts. Last week saw data show that UK factory and manufacturing output unexpectedly stagnated in November. The construction sector saw a decline of -4% and output fell from 7.5% to 2.2%.
The Australian Dollar pushed higher against the Pound after it found support from increased expectations that the Federal Reverse will resist further tapering and as a report released on Monday showed that Home loans increased in Australia. Currency’s such as the Canadian Dollar, South African Rand and Indian Rupee also benefitted from the Fed speculation.
The New Zealand Dollar also strengthened as speculation increased that the ‘Kiwi’ could reach parity with its ‘Aussie’ relation as the country’s economy continues to improve.
Current Pound Sterling (GBP) Exchange Rates:
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6361 <
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1979 <
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.8027 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9551 <
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6111>
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8345>
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5545 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5112 >
(As of 15:00 pm GMT)
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