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Australian Dollar rates dramatic fall

08 December 2016 by News Desk

Australian Dollar held its ground initially on Wednesday financial market trading.

Australian DollarAustralian Dollar then quickly plummeted by around a cent and a half as markets reacted negatively to the latest ‘Brexit’ developments according to currency specialists TorFX

New Zealand Dollar – The Pound also dropped dramatically against the New Zealand Dollar on Wednesday.

New Zealand currency rates reacted as the UK government’s plan to triggering Article 50 in March was backed by parliament as part of a deal to disclose its plans on ‘Brexit’.

The Pound (GBP) – fell against most of its peers yesterday as British MP’s backed the government’s plans to trigger Article 50 of the Lisbon Treaty in March 2017.

While market sentiment was slightly improved by a Labour motion that the government should publish its ‘Brexit’ plans and that parliament should be allowed to properly scrutinise them, the added amendment that parliament would have to accept the government’s timetable for ‘Brexit’ caused the Pound to weaken.

Australian Dollar rates dramatic fall

The Pound Euro (EUR) – exchange rate dropped by around a cent yesterday as the UK government looks set to begin ‘Brexit’ in March.

Sterling may mount a recovery later today however as the European Central Bank (ECB) meets for its latest rate meeting this afternoon.

With Eurozone inflation trailing far behind the Bank’s target of 2.0%, ECB President Mario Draghi is widely expected to announce that they will be extending the ECB’s quantitative easing programme past March next year, likely weighing on the single currency.

US Dollar – While ‘Cable’ managed to rally by around half a cent from its worst levels yesterday, it still ended the session down from where it started.

The Pound fell early in the morning thanks to a combination of poor market sentiment after the government secured its timetable for ‘Brexit’ and a disappointing drop in Industrial Production.

However Sterling recovered in the afternoon as US Consumer Credit figures slid further than expected, pressuring the US Dollar (USD).

Canadian Dollar – Sterling fell by over a cent against the Canadian Dollar (CAD) on Wednesday as the ‘Loonie’ was bolstered by Bank of Canada (BoC) Governor Stephen Poloz’ hawkish tone after the Bank’s latest rate meeting.

The BoC voted to keep the interest rate unchanged at 0.50%, while Poloz was upbeat about further growth and the state of the global economy, lifting CAD.

Disclaimer: This update is provided by TorFX, a leading foreign exchange broker, its content is authorised for reuse by affiliates.

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