Massive decline in the Pound against the Dollar in our Compare Money Transfer daily currency exchange update
The Pound is on course to make its biggest weekly decline since November against the US Dollar as economists raise their bets that today’s UK retail sales report will show that sales declined in January. The currency also looks likely to drop against the Euro despite a Bank of England policy maker saying that interest rates are likely to rise early next year.
The ‘Greenback’ found support yesterday after February’s US Manufacturing PMI rose beyond a three year high. The US Dollar continued to push higher against its peers as the currency remains supported by expectations that the Federal Reserve will continue to push ahead with reducing its monetary stimulus programme despite the recent run of disappointing economic data releases.
The Euro is expected to push higher against the Pound today due to expectations that retail sales data out of the UK is likely to come in below expectations. The single currency could find support if inflation data out of Italy and a balance of trade report out of Spain come in positively.
The ‘Aussie’ is set to make its first weekly decline in a month today after Deutsche Bank forecasted that the currency may tumble by as much as 20% in two years. The ‘Aussie’ fell to a one-week low yesterday after manufacturing data out of China disappointed. Also weighing on the currency was the fall in the value of iron ore, Australia’s biggest commodity export.
New Zealand Dollar
The New Zealand Dollar recovered some ground after risk appetite improved following the announcement of a peace deal in Ukraine and improved expectations for global growth.
The Canadian Dollar tumbled against its US relation after yesterday’s positive manufacturing PMI report for the USA boosted demand for the US Dollar. Today sees the release of a number of economic reports which could see the ‘Loonie’ recover some ground if they come in positively.
South African Rand
The Rand continued to fall against its peers after being weighed down by continuing labour strife in the South African mining sector. The currency dropped after police said that a miner was killed by members of a rival trade union. The news heightened fears that violence could spread.