Blog


26/02/2020 – This Morning’s Exchange Rates

  • Posted by currencies in Rate Alerts
  • February 26, 2020
  • No Comments

GBP rose by 0.5% against the USD yesterday reaching over 1.30 for a 1 week high, with the likelihood of a rate cut by The U.S. rising week by week.

The main factor has been increased fears of the true economic damage caused to The U.S. by The Coronavirus. Consumer confidence missing expectations is also a concern for the U.S. and will no doubt play a part in any rate decision.

With odds rising on a U.S. rate cut along with Consumer Confidence sliding, we could see some short-term USD weakness as investors will naturally look to CHF & GBP as safe haven.

Sterling also rose roughly 0.5% against the EUR, reaching levels of 1.1970 due to a fragile outlook for the European economy. Yesterday saw Germany’s final growth report for the 4th quarter stagnate at 0%. With further outbreaks in Italy yesterday, and the death total now at 11 there is a real fear that this outbreak could tip Europe over the edge and deep into a recession.

The Coronavirus now presents a bigger issue for the Euro as opposed to GBP.

Moving throughout the week, GBP movement will be driven by Brexit developments. Yesterday EU officials agreed to their mandate, warning Britain faced a tough road ahead.

Brussels mandate evolves around The UK signing up to a ‘level playing field’, essentially requesting The UK to continue to follow some of the bloc’s rules and standards.

After the release of The EU’s mandate, Number 10 accused Brussels of backing away from the terms of The Political Declaration which was agreed in 2019. The UK are set to release their mandate re-confirming their position of wanting a Canada/Australian style deal which has also been approved for America previously, on Thursday.

Please find the exchange rates listed at the bottom of the article, the rates are for indication purposes only, for a live quote please contact us.

GBP rose by 0.5% against the USD yesterday reaching over 1.30 for a 1 week high, with the likelihood of a rate cut by The U.S. rising week by week.

The main factor has been increased fears of the true economic damage caused to The U.S. by The Coronavirus. Consumer confidence missing expectations is also a concern for the U.S. and will no doubt play a part in any rate decision.

With odds rising on a U.S. rate cut along with Consumer Confidence sliding, we could see some short-term USD weakness as investors will naturally look to CHF & GBP as safe haven.

Sterling also rose roughly 0.5% against the EUR, reaching levels of 1.1970 due to a fragile outlook for the European economy. Yesterday saw Germany’s final growth report for the 4th quarter stagnate at 0%. With further outbreaks in Italy yesterday, and the death total now at 11 there is a real fear that this outbreak could tip Europe over the edge and deep into a recession.

The Coronavirus now presents a bigger issue for the Euro as opposed to GBP.

Moving throughout the week, GBP movement will be driven by Brexit developments. Yesterday EU officials agreed to their mandate, warning Britain faced a tough road ahead.

Brussels mandate evolves around The UK signing up to a ‘level playing field’, essentially requesting The UK to continue to follow some of the bloc’s rules and standards.

After the release of The EU’s mandate, Number 10 accused Brussels of backing away from the terms of The Political Declaration which was agreed in 2019. The UK are set to release their mandate re-confirming their position of wanting a Canada/Australian style deal which has also been approved for America previously, on Thursday.

GBP/EUR 1.1887 GBP/USD 1.2948 GBP/AED 4.7492

GBP/AUD 1.9692 GBP/CHF 1.2617 GBP/CAD 1.7221

GBP/NZD 2.0444 EUR/USD 1.0879 GBP/ZAR 19.771

Leave a Reply

Your email address will not be published. Required fields are marked *

What's Going On?

Currencies 4 You Ltd is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House Victory Way Admirals Park, Crossway, Dartford, Kent, DA2 6QD. Currencies 4 You Ltd’s Payment and Foreign Currency Exchange Services are provided by Ebury Partners UK Limited. Currencies 4 You Ltd is partnered with Ebury Partners UK Limited as its Programme Manager. Ebury Partners UK Limited are authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution. (Reference Number 900797). | Terms and Conditions | Privacy Statement | Careers