Market Update – Week Beginning 9th November

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Pound Sterling Rallies as Unemployment Hits Seven-Year Low

After taking a beating against the major currencies at the end of last week thanks to the Bank of England’s (BoE) decision not to raise interest rates, the Pound Sterling (GBP) has begun to rise again. Some good employment data today has seen modest Sterling rises against most currencies, with the Pound holding above 1.41 against the Euro and nearing 1.52 against the US Dollar. A lack of notable UK news could limit further Pound movement for the rest of the week.

Euro Down Thanks to Turbulence in Greece and Portugal

Political trouble in Portugal and economic woes in Greece have caused uncertainty in the Eurozone. This has seen the Euro (EUR) fall against Pound Sterling, the Australian Dollar (AUD) and the New Zealand Dollar (NZD), while remaining steady against the US Dollar (USD). The Euro’s decline could continue in the week ahead if the situation in Portugal worsens.

US Dollar Sliding Following Last Week’s High

USD had a particularly good week last week, hitting a high seven-month high against Pound Sterling. Traders sold it while it was high, so the ‘Buck’ has been slowly losing value in the face of lukewarm demand. Before the weekend we could see the US Dollar recoup losses if US Advance Retail Sales impress.

Australian Dollar on the Rise as US Dollar Falls

A weak US Dollar is good for the Australian Dollar, so demand is rising for the ‘Aussie’. There’s also been some good data this week which suggests that the housing market is performing particularly well. The Australian Dollar is currently up against the US Dollar, the Canadian Dollar (CAD), the New Zealand Dollar and the Euro but with Australian employment data to come things could change.

New Zealand Dollar Buoyed by Chinese Data

New Zealand’s biggest export destination, China, has had an uncertain few days. Bad news regarding the Chinese economy devalues the New Zealand Dollar, so recently released positive figures have helped the ‘Kiwi’ recover. It is currently up against the Euro and the US Dollar and slightly down against Pound Sterling, the Canadian Dollar and the Australian Dollar.

Canadian Dollar Falls Thanks to Drop in Oil Prices

Another fall in the price of oil has seen the Canadian Dollar slide against Pound Sterling, but trouble in other economies has seen the ‘Loonie’ go up against EUR and the USD. It is predicted that oil prices won’t return to 2014 prices for another three years: a forecast which could have a significant impact upon CAD in months to come.

Posted by Rewan

Rewan is one of an in-house team of currency analysts working at TorFX, a leading foreign currency broker. In his role Rewan studies the latest currency market movements and writes about the impact of global economics and politics on exchange rates for several online and physical publications.

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