It was a big week for the Pound, starting the week up against the US Dollar, with UK consumer inflation data picking up as expected and Sterling rising a little in advance of the Repeal Bill. When the Repeal Bill passed with a greater majority than expected, this served to boost the Pound. Later in the week, the Bank of England also helped Sterling to strengthen, hinting at an interest rate increase and revising economic forecasts as figures proved to paint a stronger picture of the UK economy than the Bank of England expected.
Sterling ended last week as one of the strongest performing currencies – at its highest for a year against the USD and the highest against the Euro for the past couple of months. The Pound also started this week off on a good footing, at 2016 levels against the US Dollar.
The Euro is starting to pick up the pace again, too, on the publication of the latest consumer price inflation figures showing a dramatic increase in comparison to the 2016 results.
The US Dollar has also had an interesting time. From a very strong position at the start of the month, to disappointing economic data and falling against its major currency partners in the past couple of weeks, the US Dollar has been under pressure from all sides, in the face of the nuclear threat from North Korea, ferocious hurricanes and surprise economic developments in other countries taking their toll. Find out more about how the US Dollar has fared in this month’s GBP-USD report.
In Australia, business confidence has dropped, despite corporate conditions seemingly at their best since the global economic crisis. Consumer confidence is also lower, as the cost of living and housing increase, and Aussie consumers are starting to feel the squeeze. Sterling even rose against the Australian Dollar following positive data coming from the UK.
China’s economic growth is failing to live up to expectations, and, although this would usually have a noticeable effect on the Australian Dollar, robust employment data from Australia helped the AUD to strengthen. You can see the most recent AUD update here.
Political uncertainty is casting a shadow over neighbouring New Zealand, as they await their elections on 23rd September, and the New Zealand Dollar is likely to feel the pressure of a potentially closely-run election race in the run up to and after the event. Governmental changes could have dramatic effect on monetary policy, and in turn, the strength of the NZD. Access the latest New Zealand Dollar report here.