Exchange Rates Today 22.01.2020: Pound Best Performer In G10 Currency Block, Euro Fades ZEW Gains, Dollar Pressured By China Virus – Exchange Rates UK

– “The China coronavirus story seems to be dominating the FX market.” Gittler, BDSwiss

– “Currency movements caused by these fears will be quickly reversed and therefore offer good trading opportunities.”

– The Pound-Euro exchange rate is +0.05% higher @ €1.17739 on 22.01.2020

– The Pound-Dollar exchange rate is +0.1% higher @ $1.30584 on 22.01.2020

Pound Sterling (GBP) Exchange Rates

The British Pound exchange rates were an impressive performer on Tuesday, bouncing roughly 50 pips to $1.3050 against the U.S. Dollar.

Pound Sterling was the top performer among G10 FX, buoyed by some impressive job numbers which broke a miserable trend in UK data. Although the unemployment rate remained steady, job gains and hourly wages were strong and put some upside into Cable. Given the current dialogue in the marketplace regarding a possible cut from the BoE, today’s data will probably give some fire to the more hawkish members making Sterling’s outperformance quite predictable as the danger of an immediate cut has diminished.

Analysts at Scotiabank are still bullish Cable in the short term, noting important resistance upcoming around the $1.31 handle,

“Sterling has firmly detached from the 1.30 mark to trade around the 1.3050 level— which will act as intraday support followed by a 1.3020/45 support channel—with further upside momentum for the currency facing a couple of congestion bands—1.3055/75 followed by 1.3075/95—on the way key resistance at the 1.31 level which it briefly crossed last Fri (intraday high at 1.3118).”

Euro (EUR) Exchange Rates

Some considerably better than expected ZEW data in Germany gave the Euro a boost above 1.11, but this proved to be short-lived as the EUR/USD once again dove into the upper 1.10 handle. These repeated failures are not particularly inspiring for EUR bulls who one presumes will eventually get tired of relentlessly buying these dips if none of them follow through.

US Dollar (USD) Exchange Rates

U.S. stock markets were under pressure on Tuesday as concerns about a coronavirus in China spilled over and Boeing stock took a sizeable 3% hit after another delay to its 737 MAX jet’s return to the skies.

The US Dollar was firm in these conditions as its safe-haven quality came to the fore, firming the DXY as equity markets moved off their highs in the afternoon session.

“The China coronavirus story seems to be dominating the FX market. So far 440 confirmed cases and nine deaths” says Marchall Gittler, BDSwiss. “A case has been confirmed in the US. If people are afraid to interact with other people, they cut back on their shopping and economic activity slows. Hence a weaker AUD and NZD. But markets are remaining calm; although US stocks were down about 0.5%, most Asian markets are up this morning, including China. Nor is there much of a  corresponding rise in JPY; it gained on some haven demand in the US session, but subsequently lost most of the gains. Both USD/JPY and EUR/JPY are little changed from yesterday morning’s levels.”

So what will be the ultimate impact on currencies? “In short, I don’t expect this outbreak to have a lasting impact on the financial markets.” says Gittler. “I think currency movements caused by these fears will be quickly reversed and therefore offer good trading opportunities.”

OTHER MAJORS

It was a rough day for the Australian and Canadian Dollar’s, as they bowed to rocky risk sentiment.

Crude oil sold off overnight this morning, putting additional upward pressure on USD/CAD while weak consumer sentiment in Australia pushed the AUD lower.

While stock futures gained, the Japanese Yen lost some of the firmness that was seen on Tuesday and is now back on the verge of moving back above 110 against the USD.

THE DAY AHEAD

It’s a stacked day of economic data ahead, with UK retail sales first, followed by Canadian CPI. In the U.S. existing home sales are on tap before the BoC makes its decision on interest rates and the all-important accompanying statement. Japanese import and export data is available in the evening, while Australian employment data finishes off a hectic day’s trade in exchange rates.

Live GBP Exchange Rates Today:

CHF = 1.26732 (+0.27%)

AUD = 1.91002 (+0.25%)

JPY = 143.71939 (+0.23%)

NZD = 1.98214 (+0.2%)

CZK = 29.59054 (+0.17%)

CAD = 1.70824 (+0.15%)

TRY = 7.75430 (+0.15%)

HKD = 10.15210 (+0.15%)

EUR = 1.17861 (+0.15%)

ILS = 4.51383 (+0.14%)

SEK = 12.43497 (+0.13%)

NOK = 11.73754 (+0.13%)

CNY = 9.02021 (+0.12%)

USD = 1.30607 (+0.12%)

SGD = 1.76310 (+0.11%)

PLN = 4.98536 (+0.11%)

MXN = 24.48304 (-0.03%)

ZAR = 18.86890 (-0.23%)