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Categorized | Currency News

Pound Holding Steady Despite Concerns Over Steel Industry

As traders await British government spending data, the Pound is holding steady versus most of its major peers. A slight lean towards depreciation can be attributed to ongoing concern regarding the UK steel industry. With an influx of cheap steal from China pricing British manufacturers out of the market, as many as 1 in 6 jobs could be lost over the coming month.

During the European session the interbank Pound Sterling to Euro (GBP/EUR) exchange rate was in the region of 1.3574.

Euro (EUR)

With many traders now convinced that the European Central Bank (ECB) will hold off expanding monetary policy on Thursday after a bank lending survey showed Euro-area banks eased loan conditions, the shared currency edged higher versus many of its currency rivals. With a distinct lack of domestic data to provoke volatility, the common currency is likely to hold its current position versus its major peers.
During the European session the interbank Euro to Pound Sterling (EUR/GBP) exchange rate was in the region of 0.7364.

US Dollar (USD)

Ahead of this afternoon’s US Mortgage Applications data, the US asset was trending in a fairly narrow range. Ongoing uncertainty regarding the timing of a Federal Reserve benchmark rate hike is weighing on demand after Fed officials made divergent speeches. Concern over China’s apparent economic slowdown also continues to weigh on the US asset with policymakers highlighting global growth issues as a major stumbling block preventing tighter policy.
During the European session the interbank US Dollar to Pound Sterling (USD/GBP) was in the region of 0.6482.

Australian Dollar (AUD)

China’s equity market saw losses at the close of Wednesday’s Asian session which has caused dampened market sentiment. The Shanghai Composite Index ended the session nearly 3.1% down, the biggest drop in a month. As a risk-correlated currency, the ‘Aussie’ (AUD) declined in response to trader risk-aversion strategies. A 0.1% increase in September’s Westpac Leading Index wasn’t enough to provoke ‘Aussie’ gains.
During the European session the interbank Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was in the region of 0.4677.

New Zealand Dollar (NZD)

Much like its antipodean counterpart, the New Zealand Dollar declined in response to China’s falling stock prices. Now that dairy prices have settled, the ‘Kiwi’ (NZD) has seen significant losses after having appreciated considerably over the past month. A slower pace of Credit Card Spending growth in September also weighed on demand for the Oceanic currency. Also weighing heavily on demand for the New Zealand Dollar was the fact that dairy prices declined. The latest Global Dairy Trade index slid -3.1% which ended a 4-month streak of rising prices.
During the European session the interbank New Zealand Dollar to Pound Sterling (NZD/GBP) exchange rate was in the region of 0.4348.

Canadian Dollar (CAD)

After China’s stocks fell by over 3% crude prices declined amid speculation of cooling demand from the world’s second-largest economy. This weighed on demand for the Canadian Dollar. Later this afternoon the Bank of Canada (BOC) interest rate decision is likely to provoke significant volatility. Although the central bank is not expected to move on policy, there is the potential that the accompanying report will signal future easing given the long period of low crude oil prices.
During the European session the interbank Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate was in the region of 0.4970.

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