‘Aussie’ drops against Euro

Pound Sterling

Despite the Office of National Statistics reporting a surprising stagnation in UK retail sales yesterday the Pound experienced little movement against the majority of its most traded counterparts, including the Euro and US Dollar. Today the British currency can expect to see volatility as a result of a raft of data releases including the GfK Consumer Confidence Survey, UK GDP statistics and Public Finance/Public Sector Net Borrowing figures.

The Pound is presently trading against the Euro in the region of 1.2300 and is trading against the US Dollar in the region of 1.6249

US Dollar

Yesterday the US Dollar posted a mixed bag of economic data. Although the 3.1 per cent growth recorded in the third quarter was better than expected, gains in the ‘Greenback’ were tempered as fiscal-cliff negotiations failed to progress and the number of US jobless claims rose. Whilst developments in the ongoing budget discussions are likely to cause the most significant movement in the US Dollar over the course of trade today, investors will also be paying attention to US Personal Consumption/Income/Spending figures for November.

The US Dollar is presently trading against the Pound in the region of 0.6154 and is trading against the Euro in the region of 0.7572

The Euro

During trade yesterday the common currency recorded moderate gains against several of its contemporaries before being pushed higher by news that Germany had cut its debt insurances in 2013 to 250 billion Euros. Today the most influential piece of economic news coming out of the Eurozone will be the German GfK consumer confidence survey for January. If it supports the optimistic German data seen earlier in the week appetite for higher yielding currencies like the Euro could be strengthened.

The Euro is presently trading against the Pound in the region of 0.8127 and is trading against the US Dollar in the region of 1.3206

Australian Dollar

For the first time in over seven days the Australian Dollar closed local trade below 105 US Cents. Industry experts are attributing the ‘Aussie’s decline to better than forecast economic data for Germany, the largest economy in the Eurozone. A lack of Australian economic news today means that movement in the South Pacific currency is likely to result from developments in the US.

The Australian Dollar is presently trading against the Pound in the region of 0.6416, is trading against the Euro in the region of 0.7894 and is trading against the US Dollar in the region of 1.0425

New Zealand Dollar

Yesterday the New Zealand Dollar continued to trade lower following disappointing GDP figures for the South Pacific nation. ‘Kiwi’ volatility could be triggered today following the release of New Zealand Credit Card Spending figures, but progression in the US fiscal-cliff situation could significantly impact the currency.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5073, is trading against the Euro in the region of 0.6243 and is trading against the US Dollar in the region of 0.8246

Canadian Dollar

The ‘Loonie’ posted modest declines against several of its peers yesterday, including the US Dollar, after commodity prices pulled back. The Canadian currency dropped by 0.04 of a cent in the morning but experienced further downward movement over the course of trade on the back of mixed economic data releases for the US. As the week draws to a close, investors will be watching this afternoon’s Bank of Canada Consumer Price Index and Gross Domestic Product figures.

The Canadian Dollar is presently trading against the Pound in the region of 0.6209, is trading against the Euro in the region of 0.7641 and is trading against the US Dollar in the region of 1.0092

 

Laura Barrett
This post was written by
Laura moved from the US to the UK several years ago. As a corporate sales executive for a leading foreign exchange company, Laura has expert knowledge of currency movements and market trends and is able to offer specialist guidance regarding making a trade at the most lucrative time and protecting transactions from currency risk.