GBP/AUD Climbs Despite Drop in UK Confidence, GBP/EUR Exchange Rate Softer
24 November 2017 by News DeskThe pound had a mixed day on Friday, falling against the euro (GBP/EUR) but climbing against the Australian dollar (GBP/AUD), say industry experts FC Exchange.
The pound to euro (GBP/EUR) exchange rate softened in Friday’s European trading as UK consumer confidence took a tumble and Eurozone growth numbers inspired investor sentiment. The euro had a poor start to the week when German coalition talks collapsed and it seemed as if Germany could be facing another round of elections. However, the single currency went on to recover, at the possibility of support for a minority government and positive economic data. The euro hit a two-month high versus the US dollar (EUR/USD) as the leader of the German Social Democratic Party Martin Schulz said his party wouldn’t be an ‘obstructionist’, reducing the chance of fresh elections. Additionally, the minutes from the European Central Bank (ECB) fell in line with expectations.
In terms of ecostats, the Eurozone’s recruitment of new employees reached a 17-year high in November, with a healthy demand for goods and services supporting the increase. Markit’s flash composite purchasing managers’ index (PMI) came in at 57.5 in November after economists had expected it to stagnate at 56.0. Germany’s final quarter three annual growth rate also printed positively, at 2.8%, from the previous 2.3%.
Meanwhile, in the UK, consumer confidence dropped to its lowest level since directly after the Brexit vote according to data from YouGov and the Centre for Economics and Business Research.
Head of YouGov Stephen Harmston commented: ‘There have been falls across the board – from how secure people feel in their jobs to what they think house prices will do – and the increased cost of living has put a big squeeze on people’s household finances. Overall, these are a gloomy set of consumer confidence figures.’
The pound to Australian dollar (GBP/AUD) exchange rate was able to climb on Friday as markets remained wary about the Australian economy. However, despite more upbeat meeting minutes from the Reserve Bank of Australia (RBA), its unlikely that interest rates will increase anytime soon.
Today, the pound to euro (GBP/EUR) exchange rate has traded between the range of 1.1204 and 1.1244. The pound to Autralian dollar (GBP/AUD) exchange rate is trending +0.44% higher at 1.7521.
Disclaimer: This economic update is provided by FC Exchange a Global Reach Group Company, industry leaders in foreign exchange. Authorised affiliates are permitted to reuse content.
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