Pound Sterling to Euro Exchange Rate (GBP/EUR) Gains on Concerns ECB Interest Rate Cut; GBP AUD/NZD/CAD Gain

Modified: Friday, 18 October 2013 15:28 BST - Written by Ben Hughes

STORY LINK Pound Sterling to Euro Exchange Rate (GBP/EUR) Gains on Concerns ECB Interest Rate Cut; GBP AUD/NZD/CAD Gain

Strong GDP data from China has helped AUD, NZD and CAD on the day. Elsewhere, the Pound has registered gains against the euro on the day thanks to continued concerns regarding an interest rate cut from the ECB.

The Pound Australian Dollar exchange rate (GBP/AUD) is currently trading down by 0.20% at 1.6759 GBP/AUD. The Australian Dollar Pound exchange rate is currently trading at 0.5967 AUD/GBP.

Some firmer economic data from China, released during last night’s Asian session, has provided a fair wind for the Commodity Dollars and risk-driven tenders so far today. The Q3 GDP figure for the world’s second largest economy showed at an annualised 7.8% up from Q2’s counterpart number of 7.5%. It was the first time that the pace of economic growth in the Chinese economy has increased for three quarters but in truth the showing was fully expected by analysts.

The fact that these encouraging noises from Asia’s number one economy were fully anticipated dampened the positive effect which the growth figures had on the Australian, New Zealand and Canadian Dollars on the day. The Aussie and Kiwi managed to register small gains against Sterling, sending the GBP AUD and GBP NZD exchange rates down to 1.6768 and 1.9076 respectively. The Pound Canadian Dollar exchange rate (GBP/CAD) has moved forward by a small increment, climbing to as high as 1.6689 earlier as the Loonie continues to suffer due to the adverse effect which this month’s US government shutdown in the US is likely to have on Canadian exporters.

Elsewhere, the Pound euro exchange rate (GBP/EUR) has pushed ahead slightly on the day, touching 1.1843 earlier. The single currency remains prone to lapses in support thanks to European Central Bank President Mario Draghi’s continued insistence that his Bank’s monetary policy committee is still considering a cut in its key lending rate. Until Draghi ceases stating that a loosening of eurozone monetary policy is a live possibility, then support for the euro is likely to remain flaky. Next Wednesday’s whole of eurozone Consumer Confidence survey for October is the next tier one data release of note from mainland Europe. A strong showing could reverse today’s losses.

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