Fx round-up_ sterling sours on major crosses, dives versus kiwi, rand _ digitallook. com definition of stock market
Sterling soured on its major cross this afternoon, in particular crumbling against a resurgent New Zealand dollar and stronger South African rand.
At about 17:09 BST, sterling was down 0.06% to $1.2184, and down 0.27% to €1.1079. Risk analysis in stock market Against the kiwi it fell 0.74% to NZ$1.7081, and on the South African unit it fell 1.27% to 17.2501 rand.
The British unit has been on the back foot since the UK’s non-binding referendum to quit the EU back in late June, the market now preoccupied with a so-called hard Brexit, inflation and the fallout for the UK economy.
It had fallen below the key $1.22 and €1.11 levels it has been dancing around recently, said Campbell, noting sterling remained above recent multi-year nadirs.
FXTM research analyst Lukman Otunuga opined
that the “poisonous combination of uncertainty and political risk have made the sterling the worst performer this year among its major peers with further declines still expected.
“While the parity dream on the GBPUSD is still some distance away, a US rate hike in December could be the trigger which opens a path to fresh 31-year lows below $1.180,” Otunuga said.
IG’s chief market analyst Chris Beauchamp noted the British pound’s weakness was prior to a raft of UK figures, starting with the consumer-price index on Tuesday.
“By and large the pound has held its ground today, but this is due in no small way to weakness in the dollar driven by (Fed Reserve chair) Janet Yellen’s speech at the end of last week.”
Support for South African Finance Minister Pravin Gordhan aided the rand, amid lingering concerns about the political situation in South Africa. Market risk premium calculator The kiwi dollar was resurgent ahead of New Zealand inflation and dairy prices data due Tuesday.
Returning to sterling, think-tank EY Item Club said Britain faces a prolonged period of weaker growth as consumer spending slowed and businesses curbed investments.
In the US, the Fed Reserve revealed that industrial production rose 0.1% in September, versus consensus for 0.2%, after falling a revised 0.5% in August.
Consumer goods giant Procter & Gamble reported its first quarter earnings on Tuesday, which showed an increase in profit from the same period last year, sending shares in the company 1.1% higher in pre-market trading.
88 Energy announced on Tuesday that it has reached agreement regarding a placement to raise gross proceeds of AUD 11m, to two US-based institutional investors.
Automotive retailer Pendragon’s third quarter revenue increased as it said that it had not suffered from any uncertainty in the wake of the Brexit vote and from fluctuating foreign exchange rates.
Whirlpool slid in pre-market trade after its third-quarter earnings missed estimates and the company cuts its earnings guidance for full-year 2016.
Carpetright defied expectations that it would warn on profits on Tuesday, instead admitting that while gross margins will be hit by the weak pound it remains confident of hitting full year profit targets.
US presidential candidate Donald Trump has begun to broadcast a daily Facebook Live program with two weeks left until voters go to the polls to decide whether he or Hillary Clinton will be the next resident of the White House.
Botswana Diamonds announced on Tuesday that a diamond has been found in the early stage of the re-analysis by Alrosa specialists of concentrate from large diameter drilling on kimberlite pipe AK21 on PL 260.