Exchange Rates Today: Pound to Euro & Pound Australian Dollar Sent Lower as GBP Pound Sterling Weakens

Modified: Tuesday, 14 January 2014 14:22 BST - Written by Minesh Chaudhari

STORY LINK Exchange Rates Today: Pound to Euro & Pound Australian Dollar Sent Lower as GBP Pound Sterling Weakens

With the exception of the South African Rand, the Pound Sterling (currency:GBP) was the worst performing of the sixteen most-actively traded global currencies during yesterday’s session.

At its lowest point, the Pound Sterling had shed around 1.5% of its value against both the Australian and New Zealand Dollars and only a little less against the Canadian Dollar. Meanwhile the sharp Sterling sell-off sent the Pound euro exchange rate (GBP/EUR) down through the psychologically important 1.2000 level.

Sterling’s pronounced losses against the Commodity Dollars were caused by a generalised increase in global appetite for risk from market participants following Friday’s dire US Non-Farm Payrolls data. With job creation in the US waning in December, the Federal Reserve’s next QE cut could be a few months away – a fact which supported the risk-driven AUD, NZD and CAD on the day.

Yesterday’s session brought a completely blank day for British tier one and two data releases, so the shift out of Sterling-denominated assets was not a reaction to any change in fundamentals. The move against the Pound was largely driven by profit-taking from investors following the UK tender’s break to near-term highs against several other currencies including the Australian, Canadian and US Dollars, as well as the euro, during recent sessions.

This morning’s UK Consumer Price Index data was another contributory factor behind yesterday’s Sterling weakness. With successive UK inflation figures suggesting that the rate of British price rises is rapidly cooling, investors holding Sterling fear that today’s CPI figure may show at below the government’s stated target of 2.0% for the first time since December 2009. Such an outcome would ease the pressure on the Bank of England to tighten its monetary policy, triggering further downside for the Pound.

Important Pound Sterlking, Australian Dollar, Euro & Pound Exchange Rates (Updated: 14:00 GMT 14/01/2014)

The Pound Sterling to Australian Dollar exchange rate is trading up +0.83% at 1.82636 GBP/AUD.
The Pound Sterling to Euro exchange rate is trading up +0.2% at 1.20142 GBP/EUR.
The Euro to Australian Dollar exchange rate is trading up +0.63% at 1.52017 EUR/AUD.
The Euro to Pound Sterling exchange rate is trading down -0.2% at 0.83235 EUR/GBP.

The Euro to US Dollar exchange rate is trading down -0.01% at 1.36673 EUR/USD.
The Australian Dollar to Euro exchange rate is trading down -0.62% at 0.65782 AUD/EUR.
The Australian Dollar to Pound Sterling exchange rate is trading down -0.82% at 0.54754 AUD/GBP.

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