Carney’s Comments Trigger Pound Gains

money_pesos

Pound Sterling

As the European session opened the Pound was enjoying a bullish relationship with the majority of its most traded peers as a UK consumer confidence index jumped to an almost six year high. The British currency was also boosted as Bank of England Governor Mark Carney asserted that with the UK’s economic recovery progressing he sees no cause to expand stimulus.

GBP/EUR is trading in the region of 1.1912 and GBP/USD is trading in the region of 1.6074

US Dollar

With Federal budget concerns continuing to drive investors to safe-haven assets, the ‘Greenback’ shed a short-lived advance against the Yen overnight. However, the US Dollar was able to strengthen modestly against several of its rivals as a Federal Reserve official stated that the improvement in the US labour market is steady enough to warrant tapering stimulus. Today’s US personal consumption data and the University of Michigan confidence index could trigger additional ‘Greenback’ fluctuations before the weekend.

USD/GBP is trading in the region of 0.6221 and USD/EUR is trading in the region of 0.7409

Euro

Although the Euro advanced against its US counterpart after slightly stronger-than-forecast French GDP figures, movement in the common currency was limited ahead of today’s confidence indexes for the Eurozone. German inflation data, due out at 13:00, will also have an impact on the Euro before the end of the local session.

EUR/GBP is trading in the region of 0.8395 and EUR/USD is trading in the region of 1.3495

Australian Dollar

For the first time this month the ‘Aussie’ is in line to post a five-day decline against the US Dollar as concerns that unresolved budget issues will result in a Federal shutdown in the US dampened the appeal of higher-risk assets. The Australian Dollar was also feeling the pressure ahead of next week’s Reserve Bank of Australia policy meeting.

AUD/GBP is trading in the region of 0.5805, AUD/EUR is trading in the region of 0.6915 and AUD/USD is trading in the region of 0.9325

New Zealand Dollar

Although the New Zealand Dollar trimmed its five-day decline against the US Dollar during Australasian trading, the South Pacific asset is still heading for a 0.7 per cent weekly drop. Demand for the New Zealand Dollar remains limited as a result of US budget worries.

NZD/GBP is trading in the region of 0.5165, NZD/EUR is trading in the region of 0.6142 and NZD/USD is trading in the region of 0.8291

Canadian Dollar

Following the release of US GDP data, and with the threat of a Federal shutdown looming, the Canadian Dollar softened against its US counterpart, hitting a one-week low. The commodity-driven asset also weakened as the price of crude oil hit its lowest level for almost two-months.

CAD/GBP is trading in the region of 0.6025, CAD/EUR is trading in the region of 0.7180 and CAD/USD is trading in the region of 0.9690

These exchange rates were correct as of 09:30 am

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.