The pound sterling is the most losing currency in today’s trading


During the currency market session today, Wednesday, four of the eight major currencies that are traded in the global forex market incurred significant losses against their other peers.

The losing currencies topped the sterling pound, following the very high inflation data, which made it incur heavy losses. The Swiss franc came in second place in incurring losses after its previous rises after the great superiority of the US dollar and the Japanese yen, followed by the euro in third place, and the Australian dollar incurring the least losses.

The currency market was noticeably affected by the increase in risk appetite during today’s trading, as gold prices declined with the improvement of the dollar index and the rise in US Treasury futures yields.

The British pound is the top losing currency

The British pound incurred the largest losses during today’s session among the rest of the major currencies, as it fell by 3.47%, and this is due to the release of inflation data that showed its rise to its highest level in 40 years, as well as the slowdown in house prices.

Today, the data showed an increase in the monthly consumer price index during the month of April by about 9%, up from 7% in the month of March. .

The Swiss Franc is the second losing currency

The performance of the Swiss franc declined during today’s trading, to come in second place in terms of the size of losses compared to the other seven currencies, as its losses reached about 1.17%, due to the high risk appetite.

The Swiss franc incurred losses against all other currencies, except for the pound sterling, but its biggest losses were against the Japanese yen and then the US dollar, which was greatly positively affected by Powell’s statements yesterday.

The euro is the third currency in terms of losses

The single currency of the European Union came in third place in terms of achieving losses, as it fell by 0.8% during today’s trading, after the release of the final data on consumer prices for the month of April, which led to the decline of the euro against other currencies, except for the pound sterling.

The data showed an increase in the consumer price index by 7.4%, after it rose by the same percentage during the month of March, while the core consumer price index rose by 3.5%, which is higher than the previous reading of 2.9% during the month of March.

Today, ECB member Rehn called for the necessity of raising interest rates from negative to positive in order to control high inflation rates.

The Australian dollar is the least major currency incurring losses

The Australian dollar was the least currency that incurred losses during today’s session, as it recorded a decline of only 0.11%, and the Australian dollar incurred slight losses thanks to the strength of the Australian economy, as it managed, despite its decline, to achieve gains against other currencies except for the Japanese yen and the US dollar, which outperformed its performance, but It was also affected by the results of some negative economic data released today.

The data showed the Melbourne Leading Index – which is issued monthly and provides expectations about the direction of the Australian economy – by 0.5% to negative territory to record -0.2%, down from 0.3% during the previous month.

Moreover, the wage price index reading showed an increase of only 0.7% compared to expectations of 0.8%, which negatively affected along with the Melbourne index reading on the performance of the Australian dollar.


Leave a Comment