Canadian Dollar bounced back

Pound Sterling

Prior to the Bank of England’s two-day policy meeting the Pound was able to gain for a second day against the US Dollar and with Barak Obama retaining the US Presidency further advances could be on the cards. At the same time developments in Australia heightened risk appetite and knocked Sterling from its five-week high against the Euro. For all currencies the main cause of volatility today will be the results of the US election but investors will also be looking to Europe and the release of several key pieces of Eurozone data.

The Pound is presently trading against the Euro in the region of 1.2454 and is trading against the US Dollar in the region of 1.6027

US Dollar

The votes have been counted and verified and after the closest race in recent years Barak Obama can officially call himself America’s 44th President for another four years. With all the campaigning behind him Obama must now return to tackling America’s economic crisis and the US Dollar has already fallen in anticipation of his next move. The likelihood of the US continuing with ‘Greenback’-weakening fiscal stimulus policies is significantly higher with Obama at the helm and the Dollar fell against all but one of its main counterparts as a result.

The US Dollar is presently trading against the Pound in the region of 0.6238 and is trading against the Euro in the region of 0.7775

Euro

After losing ground in recent days the Euro was able to post modest advances against safe-haven rivals the US Dollar and Japanese Yen. Fluctuations in the common currency are sure to occur today in light of the Greek parliamentary vote relating to a new bunch of essential austerity measures. Decisions must be made soon if Greece is to have any hope of securing a further bailout. Also of interest today is the release of Eurozone retail figures and German Industrial Output statistics.

The Euro is presently trading against the Pound in the region of 0.8019 and is trading against the US Dollar in the region of 1.2852

Australian Dollar

The Australian Dollar not only held on to the gains achieved following the Reserve Bank of Australia’s rates announcement but was pushed higher as a result of Barak Obama’s triumph in the US presidential elections. The ‘Aussie’ advanced on both its US counterpart and the British Pound but recorded a slight decline against the higher-risk Euro.

The Australian Dollar is presently trading against the Pound in the region of 0.6531, is trading against the Euro in the region of 0.8136 and is trading against the US Dollar in the region of 1.0465

New Zealand Dollar

With Barak Obama’s victory assured the New Zealand Dollar registered a slight gain against a broadly softening US Dollar. Advances in the ‘Kiwi’ were severely limited however after Reserve Bank of New Zealand Governor Graeme Wheeler undermined investor confidence by claiming the currency was still too strong. The New Zealand Dollar declined against its Australian counterpart, the Euro and the Japanese Yen but held yesterday’s level against the British Pound.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5166, is trading against the Euro in the region of 0.6451 and is trading against the US Dollar in the region of 0.8290

Canadian Dollar

After posting losses yesterday the Canadian Dollar bounced back. Rising US stocks and raw materials improved the attractiveness of higher yielding assets and saw the ‘Loonie’ gain against its main peers. The Reserve Bank of Australia’s decision to leave its benchmark interest rate unchanged also boosted riskier currencies, aiding the Canadian Dollar’s rise despite a report which detailed a decline in Canada’s Ivey purchasing managers’ index. With Barak Obama confirmed as the main man once more movement can be expected as the day progresses.

The Canadian Dollar is presently trading against the Pound in the region of 0.6313, is trading against the Euro in the region of 0.7866 and is trading against the US Dollar in the region of 1.0118

 

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.