Currency News

Daily Exchange Rate Forecasts & Currency News

FX News: Losses Forecast for Pound Sterling GBP Australian Dollar AUD Exchange Rate on Trade Deal

October 6, 2015 - Written by John Cameron

UK Service Sector Data Sends Pound Sterling (GBP) Exchange Rate Tumbling



The Pound Sterling (currency : GBP) took a heavy hit during the early part of yesterday’s European equities session with the publication of a highly disappointing survey of the UK’s vast tertiary sector. The September edition of the Markit / CIPS Purchasing Managers Index (PMI) of Britain’s services sector showed a sharp drop from August’s counterpart print of 55.6.

Foreign Exchange NEWSFLASH: GBP to AUD Hits Worst Rate of 2.13 on UK Data Flop



The result of 53.3 was well behind the consensus forecast from analysts of 56.0 and Sterling lost ground against the other sixteen most actively traded global currencies as a result, sending the GBP EUR exchange rate down to an intraday low of 1.3461 and the GBP AUD exchange rate plunging to 2.1371. The UK data suggested that activity levels in the domestic services sector stood at its lowest level since April 2013 last month – a real body blow for the British economy given that over three quarters of the domestic economy comprises tertiary industries.

Worryingly for investors holding Sterling-denominated assets, Chris Williamson of Markit suggested that the figure was part of a wider malaise in the UK economy. Williamson asserted yesterday that, ‘weakness is spreading from the struggling manufacturing sector, hitting transport and other industrial-related services in particular.’ He went on to state that, ‘wider business service sector confidence has meanwhile also been knocked by global economic worries and financial market jitters.’


Pound Sterling to AUD, NZD, CAD Exchange Rate News and Market Update



Elsewhere, the currencies of the Pacific Rim received a much-needed shot in the arm following yesterday’s announcement that the USA, Japan and ten more minor Pacific nations have reached a trade deal to encourage free export and import of goods and services across the region. The Trans-Pacific Partnership (TPP) will cover Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam and many analysts forecast that its instigation will call a halt to the recent weakening of the Australian Dollar (currency : AUD) and New Zealand Dollar (currency : NZD) against the Pound Sterling.

Advertisement

Like this piece? Please share with your friends and colleagues:

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.


TAGS: Australian Dollar Forecasts Currency Predictions Daily Cur Forecasts

Comments are currrently disabled