Pound Sterling Exchange Rates Today: GBP Under Pressure vs CAD, AUD, EUR and USD
- Written by: Gary Howes
-
The British pound sterling has stayed steady on global foreign exchange rate markets through the course of Thursday the 6th of Feb with an uneventful Bank of England MPC decision underpinning the UK currency.
The decision, released at 12PM, saw interest rates and quantitative easing kept unchanged and no accompanying statement was released.
A look at the pound sterling exchange rate complex in early afternoon in London shows:
- The pound sterling to US dollar exchange rate is 0.08 pct higher at 1.2063.
- The pound sterling to euro exchange rate is 0.07 pct lower at 1.6299.
- The pound sterling to Australian dollar rate is 0.67 pct lower at 1.8186.
- The pound to Canadian dollar exchange rate is 0.26 pct lower at 1.8034.
Note: All FX quotes here refer to the wholesale spot market. Your bank will charge a spread at their discretion when passing on a retail rate. However, an independent FX provider is so well placed on the market that they are able to deliver you up to 5% more currency. Please learn more here.
Pound dollar exchange rate today
We have just published a note on the consensus forecasts for the pound dollar exchange rate in 2014, it is worth a read for those with currency requirements this year.
For the present, 1.63 seems to be the key level for GBP/USD.
"Despite experiencing some trading below 1.63, the dollar is struggling to direct the rate further resulting in some fluctuation about the 1.63 mark. With some key US releases this afternoon, the greenback could break this barrier of resistance as investors reposition ahead of tomorrow’s US employment report," says Sasha Nugent at Caxton FX.
The rate is currently trading at 1.6299, but if US data is solid, there could be more downside to come.
Pound euro exchange rate today
The pound euro exchange rate is likely to see some volatility this afternoon as we have an ECB policy decision due.
The pound came under increased pressure in the last session as UK Services PMI kept sterling on the back foot. Just as the rate dipped below 1.20, the sterling buyers resurfaced as the market felt the pound was oversold.
"With the BoE rate announcement almost a non-event, focus turns to remarks from the ECB and this is likely to be the main driver of the rate. We expect some dovish statements and this should help direct the rate higher," says Nugent.
It is worth noting that the majority of market analysts are however confident that the ECB will not make any eyebrow-raising decisions, and this should help the euro somewhat.
For GBP/EUR the support at 1.2 is crucial and will likely hold. However, should it break then be prepared for a quick race lower into the mid 1.19's.
Euro dollar exchange rate today
The euro has shown its resilience creeping slightly higher in the last session.
The ECB announcement will have a significant influence on this rate and we have already begun to see the market preparing for some more dovish remarks from President Draghi.
"Strong US data should support this downward trend and with the current rate at 1.3530, we could see a move below 1.35 today," says Nugent.
Australian dollar exchange rates today
The Australian dollar has seen fresh buying interest this week as markets realise the RBA is unlikely to ease policy further.
"Demand for the Aussie continues as retail sales data and an unexpected trade surplus encourages investors to buy the Australian dollar. The pound remains vulnerable and with the RBA expected to make some more hawkish comments in tomorrow’s monetary policy statement, the pressure on sterling is unlikely to ease for now," notes Nugent.
The sterling / Aus dollar rate is marginally above 1.82 at the moment, and with the pound on back foot, we expect some trading at 1.81.
Pound vs New Zealand dollar
Somehow sterling has managed to curb losses against the NZ dollar.
In the last session, the pound recovered the momentum needed to curb sterling losses that investors had considered excessive.
This was, however, short lived and the sterling sell off has continued ahead of the BoE rate announcement.
"We doubt the BoE will adjust interest rates and therefore it is unlikely that this will have a significant impact on the rate. As a result we predict some sideways trading today," reckon Caxton FX.
Canadian dollar today
Canadian building permits disappoint, but below expected UK data keep the Canadian currency in favour.
Despite Canadian building permits coming in below estimates, the market continued to support the loonie as UK data also disappointed. The GBP/CAD slide continues and Canadian trade balance figures could force the rate lower.
"The market expects the Canadian economy to post a trade surplus and any upside surprise here will result in further losses for the pound," says Nugent.
