Canadian Dollar dropped against US counterpart

Pound Sterling

Sterling posted declines against its US counterpart this morning following yesterday’s release of minutes from the latest US Federal Reserve meeting. The minutes revealed that a proportion of policymakers believe monetary easing should be reigned in, an attitude which caused the US Dollar to turn bullish and push the Pound to a three-week low. The British currency could extend its losses if today’s UK services PMI data comes in lower than expected.

The Pound is presently trading against the Euro in the region of 1.2329 and is trading against the US Dollar in the region of 1.6058

US Dollar

Fears regarding the US debt ceiling and minutes from the most recent US Federal Reserve meeting turned investors towards safe-haven assets, allowing the ‘Greenback’ to broadly firm. The US Dollar recorded gains against several of its most traded rivals as concerns mount that lawmakers will fail to agree on raising America’s borrowing limit within their two-month time frame. Of particular interest today is the US non-farm payrolls figure. A disappointing result could see the ‘Greenback’ continue to gain.

The US Dollar is presently trading against the Pound in the region of 0.6227 and is trading against the Euro in the region of 0.7683

Euro

With risk-appetite dampened by US concerns higher-yielding assets declined. Over the course of trade yesterday the Euro dropped against several of its major competitors and was little changed following the release of better-than-forecast German unemployment data. Whilst this morning’s Eurozone data could cause movement in the common currency the most likely source of volatility will be the US non-farm payrolls figure. If it exceeds expectations riskier currencies like the Euro could benefit.

The Euro is presently trading against the Pound in the region of 0.8109 and is trading against the US Dollar in the region of 1.3024

Australian Dollar

After disappointing Australian and Chinese service industry indexes the Australian Dollar pared recent gains against its US rival. However, heighted speculation that the Japanese central bank will implement monetary stimulus in order to weaken the Japanese Yen supported the ‘Aussie’ against the safe-haven asset. A lack of economic news from the South Pacific today means that developments in the US are likely to be the main causes of movement in the Australian Dollar.

The Australian Dollar is presently trading against the Pound in the region of 0.6497, is trading against the Euro in the region of 0.8019 and is trading against the US Dollar in the region of 1.0435

New Zealand Dollar

Although the increasing likelihood of the Bank of Japan boosting stimulus allowed the New Zealand Dollar to gain by 0.2 per cent on the Japanese Yen, the ‘Kiwi’ fell by 0.4 per cent against other safe-haven asset the US Dollar. Over the course of trade yesterday American developments led to a bout of risk-aversion, triggering the New Zealand Dollar’s decline. Today the influential US non-farm payrolls figure could cause further ‘Kiwi’ fluctuations.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5137, is trading against the Euro in the region of 0.6326 and is trading against the US Dollar in the region of 0.8235

Canadian Dollar

Following yesterday’s significant gain the Canadian Dollar dropped against a broadly strengthening US Dollar, falling by the most for nearly two weeks. However, the ‘Loonie’ was able to strengthen against other currency rivals, including the Euro, prior to today’s volatile Canadian and US employment reports.

The Canadian Dollar is presently trading against the Pound in the region of 0.6289, is trading against the Euro in the region of 0.7756 and is trading against the US Dollar in the region of 1.0099

 

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.