Latest 10 news items tagged Economy from our financial blog...
Pound to US Dollar (GBP/USD) Sinks as Fed Announces 'Unlimited QE' Program
Published: 23 Mar at 5 PM 2020
The Pound to US Dollar (GBP/USD) exchange rate fell by over -1% after the US Federal Reserve launched an ‘unlimited’ quantitative easing program to boost the US economy. The pairing is currently fluctuating around $1.146.
Chris Rupkey, the Chief Financial Economist at MUFG Union Bank, commented: “Fed policy is shifting into a higher gear to try to help support the economy which looks like it is in freefall at the moment.”
“The central bank is shifting from being not just the lender of last resort, but now it is the buyer...
Pound to Euro Rises, UK Hopes to 'Turn the Tide' of the Coronavirus in 12-Weeks
Published: 20 Mar at 5 PM 2020
The Pound Euro (GBP/EUR) exchange rate recovered from its 11-month lows against after the Bank of England (BoE) cut its interest rates to an all-time low of 0.1%. The Bank also announced £200bn of money creation to help the UK’s economy throughout the coronavirus pandemic.
Tom Stevenson, an Analyst at Fidelity International, commented ‘Britain is now a whisker away from the negative interest rate club.’
‘Rates have never been this low in the more than 300-year history of the Bank of England. Purchases of government and...
Pound US Dollar (GBP/USD) Plummets to Lowest Level Since 1985
Published: 18 Mar at 5 PM 2020
The Pound US Dollar (GBP/USD) plummeted by over -2% and is currently trading around $1.17, its lowest level since 1985. Traders have flocked to the safe-haven refuge of the US Dollar (USD) today with the ongoing coronavirus crisis threatening to push the global economy into a recession.
Thomas Flury, a Currency Strategist at the Swiss Bank UBS, explains: “The main reason for dollar demand is liquidity concerns: In volatile times, companies and investors need dollars to settle transactions.”
“As long as these concerns persist,...
US Dollar South African Rand (USD/ZAR) Sinks as Fed Rate Cut Odds Rise
Published: 10 Mar at 3 PM 2020
The US Dollar South African Rand (USD/ZAR) exchange rate fell by -0.7% today, with the pairing currently trading around R15.920 as the ‘Greenback’ continues to suffer from falling US bond yields and fears of another US Federal Reserve rate cut.
Michael Gapen, the Head of US Economics Research at Barclays, commented that the ‘likelihood of getting a zero [per cent interest rate cut from the Fed] is higher than the risk of a recession’. Mr Gapen also added that there is ‘probably a low risk of a recession, a 1 in 4 maybe at...
British Pound to Japanese Yen Exchange Rate Nears Monthly Best as Risk-Sentiment Returns
Published: 19 Feb at 4 PM 2020
Despite the Pound tumbling against most major currencies today, the British Pound to Japanese Yen (GBP/JPY) exchange rate continued to climb. While the pair has struggled to hold its best levels, investors are selling safe haven currencies like the Japanese Yen due to coronavirus developments and this is making it easier for the pair to avoid losses.
Following last week’s solid GBP/JPY advance from 141.43 to 143.23, GBP/JPY is continuing to advance this week.
GBP/JPY briefly dipped on Monday, but since then has been advancing...
Pound Jumps 1.2% Against New Zealand Dollar as BoE Leaves Rates on Hold
Published: 30 Jan at 4 PM 2020
The Pound New Zealand Dollar (GBP/NZD) exchange rate jumped 1.2% this afternoon following the UK central bank meeting, leaving the pairing trading at around NZ$2.0187.
On Thursday, the Bank of England (BoE) left interest rates on hold, stating the economy had picked up since the General Election, meaning further stimulus was not currently needed.
Markets had been predicting a 50% chance of Governor Mark Carney using his last meeting to cut rates, meaning GBP received an upswing of support and rallied against the...
British Pound to Australian Dollar Exchange Rate Drops Back from 2020 Best on Surprising Australian Job Report
Published: 23 Jan at 3 PM 2020
The British Pound to Australian Dollar (GBP/AUD) exchange rate has seen significant gains over the past week, but the pair has finally cooled after yesterday’s volatile movement thanks to some strong Australian data. As Australia’s latest job market report was strong, it helped the Australian Dollar to rebound from its recent lows.
Since opening this week at the level of 1.8925, GBP/AUD has spent most of the week climbing. GBP/AUD gained significantly from Monday through Wednesday, briefly touching on a high of 1.9219 yesterday....
Pound Euro (GBP/EUR) Exchange Rate Falls as Markets Fear Hung Parliament
Published: 12 Dec at 4 PM 2019
The Pound Sterling Euro (GBP/EUR) exchange rate was volatile, as British voters took to the polls on Thursday, leaving the pairing trading around €1.1819.
Over the course of the week, the Pound has been buoyed by Brexit optimism reaching a two-and-a-half-year high against the single currency.
Overnight, GBP volatility increased to the highest level seen since the 2016 Brexit referendum, and it is likely the Pound will move sharply once the election results are in.
Jitters were sent through the market after a YouGov poll on...
British Pound to Euro Exchange Rate Knocked from 6-Month Best as Markets Digest Election News and Ecostats
Published: 12 Nov at 1 PM 2019
Following a jump in demand for the Pound yesterday, the British Pound to Euro (GBP/EUR) exchange rate has seen more mixed movement today. Investors sold the pair from its best levels overnight, but UK election hopes and mixed Eurozone data have meant that its losses are limited.
As a result, GBP/EUR is on track to have sustained most of the gains seen in recent weeks. Last week saw modest gains for GBP/EUR, as the pair advanced slightly from 1.1583 to 1.1595 throughout the week.
This week’s gains have been more solid so far....
British Pound to US Dollar Exchange Rate May Soar Higher if Federal Reserve Turns Dovish
Published: 13 Sep at 5 PM 2019
While the Pound’s late-week gains on Brexit hopes were volatile and likely temporary, the British Pound to US Dollar (GBP/USD) exchange rate still sustained impressive gains last week overall. The US Dollar struggled to avoid losses against Sterling due to expectations for the Federal Reserve to cut US interest rates next week.
After opening last week at the level of 1.2281, GBP/USD saw a jump in demand on Monday and sustained those gains for the remainder of the week.
GBP/USD surged again on Friday. While the pair was unable to...