UPDATE
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate advanced by around 0.5% on Wednesday morning, whilst the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate climbed by 0.6%.
The British Pound is trending higher versus its major peers on Wednesday morning as traders prepare for the publication of minutes from the latest Bank of England (BoE) monetary policy meeting. The minutes are likely to be comparatively hawkish given recent comments from Governor Mark Carney who stated that a rate hike was likely by the turn of the year.
The Australian Dollar, meanwhile, softened versus its currency rivals amid mixed results from Consumer Prices data. Additional losses can be attributed to bearish commodities and dampened risk-appetite as Greek MPs prepare to vote on more bailout terms.
The New Zealand Dollar dived versus its major peers as traders prepare for the Reserve Bank of New Zealand (RBNZ) interest rate decision due on Thursday’s Australasian session. Most economists predict that the central bank will cut the cash rate by 25 basis points in order to devalue the currency and curtail the economic damage caused by plummeting dairy prices.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 2.1079.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 2.3624.
Yesterday…
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast to Edge Lower as UK Public Finances Improve by Less-than-Expected
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate edged lower by around -0.8% on Monday afternoon after previously hitting a fresh over six-year high.
British economic data showed that the UK government’s borrowing improved when compared with this time last year, but the improvement was not as positive as the median market forecast. British Chambers of Commerce Chief Economist David Kern said; ‘We must not understate the big challenges that the UK faces in restoring stability to our public finances. Britain’s financial sector was hit hard in the recession and, together with lower oil and gas output, our ability to generate tax revenues has been seriously constrained. Therefore, we have to continue to focus on other means to tackle the deficit – including cutting current government spending.’
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 2.0949.
The Australian Dollar is holding relatively steady versus its major peers during Tuesday’s European session after having declined during the Australasian session. The ‘Aussie’ (AUD) depreciation was the result of dovish minutes from the most recent Reserve Bank of Australia (RBA) policy meeting. The minutes indicated that policymakers are willing to cut the benchmark interest rate further in order to achieve economic balance and a weaker domestic currency.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending within the range of 2.0919 to 2.1205 during Tuesday’s European session.
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast to Dive ahead of RBNZ Rate Decision
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate plummeted by around -1.0% on Tuesday afternoon.
The Office for National Statistics has warned against reading too much into the volatility of monthly finances data. Rather, the ONS suggests focusing on figures for the financial year-to-date. This shows public sector net borrowing was 25.1 billion, a drop of 6.1 billion (20%) compared with the same period in 2014.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 2.3437.
Despite the fact that Federal Reserve rate hike speculation and an economic slowdown in China are weighing on commodity prices, the New Zealand Dollar advanced versus many of its currency peers. This is due to the RBA minutes suggesting the Australian central bank would cut the rate despite previous assertions that it would steady monetary policy. This would mean that even if the Reserve Bank of New Zealand (RBNZ) cuts the cash rate, it’s borrowing costs will remain higher than the RBA’s.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending within the range of 2.3390 to 2.3677 during Tuesday’s European session.
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