Pound Sterling: Worst Performing Currency Last Week

August 15, 2016 - Written by Tim Boyer

STORY LINK Pound Sterling: Worst Performing Currency Last Week

Pound (GBP) Worst Performing Currency, Inflation Data Ahead

The Pound Sterling (currency : GBP) was one of the worst performing of the sixteen most actively traded global currencies during last week’s session. Sterling-holders will be hoping that tomorrow’s July inflation numbers, out at 0930hrs BST, can trigger a recovery for the UK unit by providing evidence that the sharp devaluation in the worth of the Pound which followed June’s Brexit vote from the UK electorate has started to increase the rate of domestic price rises by making foreign imports into the UK more expensive.

The keynote local Consumer Price Index result is the only tier one UK data set for the week, so price action for the Pound Sterling pairs will be drive by movement for other tenders.

Our leading data analyst takes a look at the other releases which matter tomorrow below …

GBP NZD Exchange Rate Firmed Despite RBNZ Interest Rate Cut

The New Zealand Dollar (currency : NZD) unexpectedly firmed against the Pound in the wake of last week’s decision by the Reserve Bank of New Zealand (RBNZ) to trim its Official Cash Rate (OCR) to a new all-time low of 2.00%.

The relatively hawkish tone of the New Zealand central bank’s accompanying commentary propped up the Kiwi Dollar in the sessions which followed and analysts forecast that another strong showing from tomorrow’s fortnightly GlobalDairyTrade auction results could see the Kiwi record further gains against the flagging Pound.

Dairy Auction Could Trigger Pound New Zealand Dollar Movement Today

As ever, the key element of the figure which Kiwi-watchers will be eyeballing the Whole Milk Powder hammer price – anything above the $2,265 of last time around will favour the New Zealand unit thanks to the product’s position as the Southern Hemisphere nation’s number one export.

Euro (EUR) Exchange Rate Movement Forecast on ZEW Economic Data

Elsewhere, July’s ZEW Sentiment Survey of the whole of the eurozone showed at a dire -14.7.

The August edition of the survey, also out tomorrow, will need to point to an uptick in confidence from the euroland’s economic participants in order for the euro (curreny : EUR) to hang on to its near-term gains against Sterling.

An improvement in the ZEW could send the GBP EUR exchange rate down to the 1.1400 threshold.

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TAGS: Daily Currency Updates Euro Pound Forecasts Pound New Zeal Forecasts