Exchange Rates Today: Pound Trends Higher Vs Euro & Dollar; Rand, US, Australian & NZ Dollars Post Losses

Published: 20 Oct 2017 21:24 Currency Markets

pound exchange rate today

Latest GBP-EUR and GBP-USD Exchange Rates Fall Overnight Despite Rising Glencore Shares

The British Pound (GBP) endured another torrid day in the market, slipping under 1.35 GBP EUR against the Euro to a low of 1.3448 overnight.

The Pound to Dollar exchange rate also fell to a 4 month low at 1.5132 GBP/USD and even posted sharp losses versus the commodity-driven currencies despite the volatility in Asian share prices.

Japanese and Hong Kong shares plummeted on Tuesday ahead of a key manufacturing report on Thursday, while the robust decline in the value of Glencore shares has sparked debate over another Lehman Brothers scenario.

The dire financial situation across the mining and metals industry was highlighted on Monday as shares in Glencore, one of the world’s leading resource companies, plunged to a record low and speculation rose over its skyrocketing debt load.

Hong Kong listed shares in the commodity giant crashed 27% on Tuesday, on the back of a 29% plunge in the company’s London-listed shares the previous session. The dramatic fall was sparked by a widely-circulated note on Glencore released on Monday by Investec that pointed to a debt base well above its peers and a lower-margin asset base.

A quick foreign exchange market summary before we bring you the rest of the report:

On Friday the Euro to British Pound exchange rate (EUR/GBP) converts at 0.854

The pound conversion rate (against euro) is quoted at 1.171 EUR/GBP.

The pound conversion rate (against canadian dollar) is quoted at 1.71 CAD/GBP.

The GBP to AUD exchange rate converts at 1.939 today.

Today finds the pound to us dollar spot exchange rate priced at 1.262.

Please note: the FX rates above, updated 29th Mar 2024, will have a commission applied by your typical high street bank. Currency brokers specialise in these type of foreign currency transactions and can save you up to 5% on international payments compared to the banks.

Australian Dollar, Rand, New Zealand Dollar Exchange Rates Post Losses

The brokerage also warned of a scenario in which earnings could collapse entirely as Glencore worked only to repay its debt, eliminating all shareholder value.

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Those debt fears weighed on Asian commodity stocks heavily on Tuesday with Rio Tinto and BHP Billiton tumbling 5% and 6% respectively within the first two hours of trading.

As a direct result, the commodity-driven currencies like the Australian Dollar, New Zealand Dollar and South African Rand all posted wider losses against other major currencies. However, the Pound was unable to hold on to those gains and slipped more than 1% on the day against all three currencies.

Sterling is struggling with demand waning on concerns that the UK economic momentum is slowing and the wider concerns over the global economy influencing the decision for the Bank of England to begin raising interest rates.

Pound Sterling Forecast Vulnerable to Losses vs Euro and Dollar

Inflation is at zero per cent and threatening to fall into negative territory again in September because the much-anticipated increase in consumer prices in the second half of this year is failing to materialize. Indeed, the crisis engulfing equities could have a massive impact and spark a worldwide financial crisis, which would leave the Pound extremely vulnerable to further large losses.

Domestically, there was some positive news in the UK on Tuesday, which largely went unnoticed, with UK mortgage approvals increasing by the greatest amount since 2008. Lenders approved the largest number of mortgages in more than 18-months, adding to signs that growth in the housing market is gathering pace. Data this morning is expected to confirm that the UK economy grew by an annualised rate of 2.6% in the second quarter, while the current account deficit is expected to reduce to 22.6 billion.

Pound to Euro, Pound to Dollar Exchange Rates Forecast Today:

As traders await the UK Manufacturing PMI, which is forecast to tick lower from 51.5 to 51.3, the Pound edged higher versus many of its peers.

The slight appreciation can be attributed to China’s equity market ending the session 0.5% higher.

The Euro exchange rate complex continues to see damp demand in response to deflation concerns, and the US Dollar is trending narrowly amid uncertainty regarding the timing of a Federal Reserve benchmark rate hike.

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