Pound to Dollar Exchange Rate Today: GBP/USD Climbs On Yellen QE Comments

Modified: Friday, 15 November 2013 12:06 BST - Written by Frank Davies

STORY LINK Pound to Dollar Exchange Rate Today: GBP/USD Climbs On Yellen QE Comments

The US Dollar (currency:USD) was friendless in the markets yesterday afternoon following dovish comments from the next Federal Reserve Chairperson. Meanwhile, the Australian (AUD), New Zealand (NZD)and Canadian Dollars (CAD) headed in the other direction.

Price action for the major global currency pairs during the latter part of yesterday’s session was driven by the major topic of the moment – Quantitative Easing. Federal Reserve Chairperson incumbent, Janet Yellen, was responsible for triggering a flurry of activity during the middle part of the North American equities session when she faced questioning from the US Senate banking committee. When pressed, Yellen categorically pinned her colours to the mast and came out strongly in support of a continuation of QE in the States, observing that it represented, “the surest path to returning to a more normal approach to monetary policy."

The Pound to US Dollar exchange rate is up by 0.02% at 1.6060 GBP/USD

Yellen went on to observe that the Fed’s controversial asset purchase scheme had made "a meaningful contribution to economic growth". As one of the architects of Quantitative Easing, Yellen’s comments were hardly a major surprise, however the markets quickly moved to price in a lower percentage chance that QE would be cut before Q2 2014. The development saw the US Dollar slump, sending the Pound Dollar exchange rate up to 1.6100 yesterday evening.

The Pound to Australian/ New Zealand Exchange Rates Dip

Elsewhere, the Commodity Dollars enjoyed a sustained bout of support following Yellen’s words. The Pound to Australian Dollar exchange rate (GBP/AUD) dipped from an intraday high of 1.7298 back down to clip the 1.7200 threshold during late trading, while the New Zealand Dollar lost around a cent on the Yellen comments, sending GBP NZD back down into the 1.9300s once more. The Canadian Dollar was also a major beneficiary, with the GBP CAD exchange rate pulling back to 1.6834 within hours of the London close.

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