‘Aussie’ hits two-week high

Pound Sterling

Prior to the release of minutes from the Bank of England’s most recent meeting, increased appetite for risk saw the Pound plummet to a four month low against the Euro. The common currency advanced 0.25 pence and could achieve further gains if the BoE minutes imply that further quantitative easing measures could be in the pipeline. Some economists have even predicted that the Euro has the potential to rise to 82/83 British Pence. However, with the US Dollar broadly weakened Sterling was able to post modest gains against the ‘Greenback’.

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 1.6123

US Dollar

With confidence in Europe increasing and several pieces of positive US data improving the global outlook the safe-haven ‘Greenback’ recorded losses against the majority of its competitors. Risk appetite dominated the market and the Euro in particular was able to make significant advances against its American rival. Today investors will be waiting to see if the US Dollar is able to rebound off the back of the US Building Permits figure due for release this afternoon.

The US Dollar is presently trading against the Pound in the region of 0.6201 and is trading against the Euro in the region of 0.7630

Euro

As prominent European leaders prepare for a two-day summit the Euro was able to benefit from top ratings agency Moody’s Investors Service keeping Spain’s Credit rating at investment grade. The common currency advanced on the majority of its main rivals – particularly the Japanese Yen, British Pound and US Dollar, achieving a four-week high against the latter. With no major Eurozone data releases scheduled for today any fluctuations in the Euro will probably be the result of US Building Permit figures and Spanish developments.

The Euro is presently trading against the Pound in the region of 0.8122 and is trading against the US Dollar in the region of 1.3097

Australian Dollar

With the likelihood of a Spanish bailout increasing and demand for safe-haven assets tempered the Australian Dollar was able to achieve its highest level for two weeks, climbing 0.4 per cent against the US Dollar. If further positive US data releases continue to bolster confidence in global economic recovery, high-yielding assets like the ‘Aussie’ could continue to advance.

The Australian Dollar is presently trading against the Pound in the region of 0.6393, is trading against the Euro in the region of 0.7879 and is trading against the US Dollar in the region of 1.0318

New Zealand Dollar

Like its neighbouring currency the New Zealand Dollar was able to benefit from Spain retaining its grade rating. With riskier assets having a greater appeal the ‘Kiwi’ posted significant gains against the US Dollar but made slight losses against the ‘Aussie’ and Japanese Yen. It was little changed against the British Pound. The New Zealand Dollar was also boosted by stronger dairy prices. Further ‘Kiwi’ volatility could follow tomorrow’s batch of significant Chinese data so investors will be keeping a keen eye on Asian developments.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5068, is trading against the Euro in the region of 0.6231 and is trading against the US Dollar in the region of 0.8174

Canadian Dollar

Despite broad weakening in the safe-haven US Dollar it’s Canadian counterpart continued its bearish trend, dropping to near two-week low against the ‘Greenback’. The ‘Loonie’ also lost ground against the British Pound and Euro. However, with investors buoyed by the latest developments in Europe Canadian stocks were able to end trade sharply higher.

The Canadian Dollar is presently trading against the Pound in the region of 0.6282, is trading against the Euro in the region of 0.7730 and is trading against the US Dollar in the region of 1.0142

 

Richard Martin
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After working in business development for a major UK currency brokers for several years, Richard left Britain to help set up the company’s Australian office and now lives and works in Queensland; making the most of his new Down-Under lifestyle.