The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has fallen by a small amount today while the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate has risen more substantially. The main reason for this has been the UK’s only domestic data of note concerning the current national trade deficit.
GBP to AUD, NZD Exchange Rate News: Storm Clouds Gather over UK Economy Today
The Pound Sterling (GBP) has trended in a tight range against most of its usual peers today, thanks to a general sense of pessimism regarding the UK’s short-term economic prospects.
The most recent damage to this fragile state of perception has been this morning’s November Trade Balance results, which showed a smaller-than-forecast improvement in the trade deficit.
Although Chancellor George Osborne has warned that a UK interest rate hike is impending, common opinion has gone against such an occurrence happening, with Bank of America Merill Lynch pushing their expectations for this event forwards from May this year to November.
As a final round off to the pessimistic mood surrounding the UK economy, University of Manchester Professor of Economics Diane Coyle has stated that: ‘Nobody worries about the current account deficit…until suddenly there is no choice’.
The Pound Sterling has declined fractionally against the Australian Dollar (GBP/AUD) today but printed a gain of 0.5% against the New Zealand Dollar (GBP/NZD); among other movements have been losses of -0.5% against the Israeli New Shekel (GBP/ILS) and -0.6% against the Indian Rupee (GBP/INR), but rises of 0.3% against the South African Rand GBP/ZAR) and 0.6% against the Hungarian Forint (GBP/HUF). Although not inspiring, this movement against the ‘Aussie’ is still an improvement on the Pound’s faring in the exchange rate on New Year’s Eve.
AUD to GBP, NZD Exchange Rates show Decline in ‘Aussie’ and ‘Kiwi’ Value Today after US Payrolls Data
Both the Australian Dollar (AUD) and the New Zealand Dollar (NZD) have slipped today against most of their rivals, mainly due to a highly positive result from the high-impact US Change in Non-Farm Payrolls figure for December. Expectations had been for an increase of200k positions following the 252K jobs gain recorded in November, but the reality showed a tremendously supportive result of 292k.
The Australian Dollar’s losses today have included -0.5% against the Chinese Yuan (AUD/CNY), while the New Zealand Dollar has recorded drops of over -1% against the US Dollar (NZD/USD) and the Chinese Yuan (USD/CNY).
GBP to AUD, NZD Exchange Rate Forecast: Uncertain Outcome for Next Week’s BoE Interest Rate Decision
The most impactful UK economic publication due in the coming week will be Thursday’s Bank of England (BoE) Interest Rate Decision, or more accurately, the accompanying minutes. At the time of writing, no economists were predicting a hike to take place, but the overall tone of policymakers is nonetheless likely to affect the faring of the Pound in the immediate aftermath.
Australia’s next ecostat comes on Monday with the ANZ monthly Job Advertisements statistic for December, while New Zealand will have input a day earlier with the November Building Permits result, which is scheduled to arrive on Sunday night.
Current GBP, AUD, NZD Exchange Rates
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.0871, the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.4797, the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending in the region of 2.2218, the New Zealand Dollar to Pound Sterling (NZD/GBP) exchange rate was trending in the region of 0.4503, the Australian Dollar to New Zealand Dollar (AUD/GBP) exchange rate was trending in the region of 0.4797 and the New Zealand Dollar to Australian Dollar (NZD/AUD) exchange rate was trending in the region of 0.9398 today.
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