Pound Sterling
After dropping to fresh 2 ½ year lows against its US and Canadian counterparts on UK economic concerns the Pound modestly strengthened against the former currency prior to the sale of government bonds maturing in 2052. Although Britain’s visible trade balance was shown to have improved slightly yesterday the data was offset by poor manufacturing and production figures. With the threat of an unprecedented triple-dip recession heighted Sterling also fell by 0.9 cents against the Australian Dollar. With little volatile UK data on the cards for the rest of the week movement in the Pound is likely to be inspired by global economic developments.
The Pound is presently trading against the Euro in the region of 1.1452 and is trading against the US Dollar in the region of 1.4944
US Dollar
With investors anticipating that this afternoon’s US data will show retail sales increasing for a fourth consecutive month the US Dollar maintained its bullish relationship with rivals including the British Pound and Japanese Yen. Yesterday the ‘Greenback’ was able to achieve 96.10 against its safe-haven rival. Although it has since fallen back, developments regarding the appointment of the Bank of Japan governor have the potential to push USD/JPY to new highs.
The US Dollar is presently trading against the Pound in the region of 0.6692 and is trading against the Euro in the region of 0.7667
Euro
Although the Euro edged up slightly against the US Dollar this morning advances were limited as investors look ahead to this morning’s Italian bond auction. Eurozone industrial production figures are also likely to trigger movement in the common currency.
The Euro is presently trading against the Pound in the region of 0.8731 and is trading against the US Dollar in the region of 1.3049
Australian Dollar
The Australian Dollar was able to advance on a broadly softening Pound and post gains against the New Zealand Dollar as economic concerns weighed on the currencies. The ‘Aussie’ was also boosted by a report which showed that Australian consumer confidence climbed to its highest since December 2010. A separate report revealed that in January a gauge of home loans dropped by 1.5 per cent after falling by 2.1 per cent in December. It seems increasingly likely that in light of recent, more positive economic news the Reserve Bank of Australia will hold rates when it meets next month.
The Australian Dollar is presently trading against the Pound in the region of 0.6909, is trading against the Euro in the region of 0.7904 and is trading against the US Dollar in the region of 1.0319
New Zealand Dollar
With the New Zealand drought worsening and the Reserve Bank of New Zealand’s rate announcement imminent the ‘Kiwi’ posted losses against several of its main currency rivals, hitting a six-week low against the Australian Dollar. Although recent economic data for New Zealand has been relatively strong investors are now concerned that the drought could prevent the RBNZ from raising interest rates from their record low.
The New Zealand Dollar is presently trading against the Pound in the region of 0.5531, is trading against the Euro in the region of 0.6318 and is trading against the US Dollar in the region of 0.8255
Canadian Dollar
After gaining against the US Dollar for four days on the back of strong employment figures the Canadian Dollar fell yesterday to trade in the region of 97 cents. Although Canadian employment data was far stronger than forecast industry experts are still concerned that the nation’s economy is struggling. They will now be looking ahead to tomorrow’s Canadian capacity utilization rate and new housing price figures.
The Canadian Dollar is presently trading against the Pound in the region of 0.6523, is trading against the Euro in the region of 0.7474 and is trading against the US Dollar in the region of 0.9742
These exchange rates were correct as of 9:11 am
