Pound News: GBP Rebounds from Multi-Decade Lows After BoE Cut
Sterling (GBP) was able to rebound against both the Euro (EUR) and US Dollar (USD) on Friday, buoyed by the Bank of England’s (BoE) decision to cut rates to a record low of 0.1%.
The Thursday’s emergency action from policymakers did demonstrate the BoE was willing to take extraordinary measures in order to protect the economy from the coronavirus pandemic. However, analysts were divided on whether the bank’s moves would boost the Pound in the medium term.
Looking ahead, GBP could edge up higher if the government announce further measures to help protect the British economy over the course of the week.
Pound Euro News: GBP/EUR Rebounds from 11-Year Low
The Pound (GBP) was able to make gains against the Euro (EUR), with the pairing headed for its second day of gains on Friday and rising by over 2%.
GBP/EUR rebounded, after plummeting to an 11-year low as coronavirus fears intensified. The calmer mood amongst investors did see the single currency edge higher, rebounding against the US Dollar.
Looking ahead, disappointing flash Eurozone consumer confidence data this afternoon could weigh on the single currency. If sentiment in the bloc darkens in March, EUR will slump lower against GBP.
Pound US Dollar News: USD Slides as California in Lockdown
The Pound US Dollar (GBP/USD) exchange rate was able to rebound from earlier 35-year lows after investors had liquidated assets for cash earlier in the week.
Meanwhile, the Dollar lost some steam after the state of California issued its 40 million residents a stay-at-home order in an attempt to slow the spread of coronavirus. This weighed on USD and market volatility calmed, allowing GBP to rise.
Looking ahead, it is likely the ‘Greenback’ will continue to edge higher this week as investors flock back to the safe-haven currency as Covid-19 continues to spread, and the global death toll rises.
Pound Canadian Dollar News: Oil Prices Plummet
The Pound (GBP) rallied against the Canadian Dollar (CAD) on Friday as oil prices fell after rising by around 10% as coronavirus worries hit oil demand once again. Added to this, Russia rejected an intervention by US President Donald Trump over Moscow’s price war with Saudi Arabia.
The oil-sensitive ‘Loonie’ struggled as the virus has caused both Brent and US crude prices to collapse by around 40% over the past two weeks.
Looking ahead, the Canadian Dollar could suffer further losses if coronavirus fears continue to weigh on oil demand and send prices lower.
Pound Australian Dollar News: Coronavirus Anxieties Dominate Markets
The Pound Australian Dollar (GBP/AUD) exchange rate ended last week over 1% higher as coronavirus worries weighed on risk appetite and the BoE rate cut sent Sterling higher.
Friday did see the increased anxieties over coronavirus ease slightly, although this is likely to be temporary and leaves AUD vulnerable to further falls over the course of this week.
Looking ahead, the ‘Aussie’ could suffer losses following the release of flash PMI readings. If data reveals both the manufacturing and services sectors have fallen into contraction territory, AUD will slump.