British Pound (GBP) Exchange Rate Trending Higher against AUD and NZD
As traders await Bank of England Governor Mark Carney’s speech later on Thursday afternoon Sterling is holding its gains against the ‘Aussie’ (AUD) and the ‘Kiwi’ (NZD). The risk-sensitive antipodean currencies have struggled against rising geopolitical tensions as traders opt to invest in safe-haven assets.
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The Pound Sterling to Australian Dollar exchange rate is currently trending in the region of 1.8515.
The Pound Sterling to New Zealand Dollar exchange rate is currently trending in the region of 2.0500.
With a distinct lack of British data on Wednesday Sterling battled against trader profit buying following the increased demand gained from the Unionist victory in the Scottish independence referendum.
Both the ‘Kiwi’ and the ‘Aussie’ have struggled against mounting tensions between Israel and Syria. As geopolitical issues surface it is not uncommon for traders to pull away from risk-sensitive currencies; opting instead to invest in safe-haven currencies.
The Pound Sterling to Australian Dollar exchange rate has hit a low today of 1.8409.
The Pound Sterling to New Zealand Dollar exchange rate has hit a low today of 2.0226.
In anticipation of Carney’s speech in Wales on Thursday afternoon Sterling is holding relatively steadily against many of its major peers.
Those invested in the ‘Aussie’ Dollar would have been pleased with European Central Bank President Mario Draghi’s interview by the Lithuanian business daily Verslo Zinios, publishedon Thursday morning. Draghi was quoted as saying; ‘We stand ready to use additional unconventional instruments within our mandate, and alter the size or composition of our unconventional interventions should it become necessary to further address risks of a too prolonged period of low inflation’. The possibility of the ECB making further attempts to improve the Eurozone economy means that the Euro will attract negative sentiment from traders and depreciate against its major peers. This makes overseas trade much cheaper and the ‘Aussie’ is likely to benefit.
Reserve Bank of New Zealand Governor Graeme Wheeler made an impromptu speech on Thursday morning which has seen the New Zealand Dollar decline against all of its major traded currency competitors. Wheeler signalled that he is prepared to sell the nation’s Dollar to weaken it, arguing that the New Zealand Dollar’s current value is unsustainable and unjustified. ‘The bank would welcome a move towards a more sustainable exchange-rate level’ said Wheeler.
Forecast for the Pound to Australian Dollar & New Zealand Dollar Exchange Rate
Sterling’s position on Friday and over the weekend will be dictated by Thursday’s speech given by Mark Carney. A hawkish overtone is likely to see Sterling rally against all sixteen of its major rivals.
With a lack of data for both the Australian Dollar and the New Zealand Dollar, their positions over the weekend are likely to be dictated by Thursday’s events. The ‘Aussie’ is likely to make fractional gains off the back of Draghi’s interview. The ‘Kiwi’ is likely to continue to decline after Wheeler’s statement that the New Zealand Dollar is overvalued.
The Pound Sterling to Australian Dollar exchange rate has reached a high today of 1.8536.
The Pound Sterling to New Zealand Dollar exchange rate has reached a high today of 2.0523.
As the end of the week approached the Pound extended gains against both the Australian Dollar and New Zealand Dollar.
The GBP/AUD pairing advanced by 0.2% while the GBP/NZD pairing climbed by 0.4%.
The Pound has made steady gains against both South Pacific currencies over the course of this week as a result of hawkish comments from the BoE and the prospect of intervention from both the Reserve Bank of Australia and Reserve Bank of New Zealand.
The UK Hometrack Housing Survey had little impact on the Pounds performance against the Australian Dollar and New Zealand Dollar.