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Pound Sterling GBP Jumps against AUD & New Zealand Dollar NZD : Exchange Rate Gains Forecast to be Ephemeral

August 25, 2015 - Written by David Woodsmith

GBP to NZD, AUD Exchange Rates Fluctuate, Pound to US Dollar Falls Below Resistance



With the People's Bank of China (PBoC) intervening in order to return stability to global stocks the British Pound gave up some of Monday's mammoth gains against the Australian Dollar and New Zealand Dollar. The British currency also fell back below a key resistance level against the US Dollar as the US published encouraging domestic data.

Earlier...

Echos of Global Market Crash Seen in 'Black Monday': Dramatic Exchange Rate Moves for EUR, GBP, USD, AUD



Yesterday’s trading session brought a day of almost unprecedented shocks and volatility in the global markets. You would have to go back to the Autumn of 2008, during the height of the global financial crisis, with the demise of erstwhile US investment banking behemoth Lehman Brothers, to witness price action on this scale.

Pound Sterling to Canadian Dollar Strikes Best Exchange Rate for 8-Years: Further GBP/CAD Gains Ahead?



The Pound Sterling (currency : GBP) opened on Sunday night firmly on the front foot against the risk-driven Commodity Dollars before a flurry of profit taking from investors during the European pre-trade caused a slight correction. However, the UK unit surged during the minutes leading up to the New York opening bell, propelling the Pound Sterling Australian Dollar GBP AUD, Pound Sterling New Zealand Dollar GBP NZD and the Pound Sterling Canadian Dollar GBP CAD exchange rates to levels not seen for many years. The Pound traded up to its highest level against the Aussie since March 2009, with the GBP AUD exchange rate topping out at 2.2359 just before the US open.

Sterling jumped to an intraday high of 2.5206 GBP NZD against the Kiwi and GBP CAD spiked to 2.0975.

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Stock Market Slump Sees GBP Surge against AUD, NZD, ZAR - Pound Gains on US Dollar



When the Dow Jones index opened for business in the States, the full extent of the global flight to safety became completely evident – America’s benchmark equities index plunged by a heady 1089 points – its greatest ever points drop on opening. Meanwhile, on the other side of the Atlantic, Europe’s leading exchanges followed America’s lead and continued their journey South. The destination for London’s benchmark FTSE 100 index was a closing level below 6,000 points for the first time since the start of 2013. The plunge of 4.6% on the day for the FTSE was eclipsed by even greater losses for the euroland’s bourses.

Foreign Exchange Predictions: Will the Pound Shed Gains against the Australian Dollar, New Zealand Dollar Today?



The driver for the move was simple – risk aversion on a mass scale from investors fearing the worse regarding the increasingly evident slowdown in Chinese economic activity. However, investors hoping that the Pound Sterling will record further gains against the Australian Dollar, New Zealand Dollar and the Canadian Dollar should be mindful that the sharp drop in risk sentiment and oil prices makes any tightening of monetary policy by the world’s leading central banks a lot less likely in the short to medium term. For this reason, many analysts forecast that yesterday’s gains for GBP AUD, GBP NZD and GBP CAD may prove to be ephemeral.
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