Common currency movement predicted

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Pound Sterling

A lack of economic news from the UK will keep the Pound relatively static today, although movement may occur in response to the meeting of Eurozone finance ministers in Brussels.  The most influential pieces of UK news to watch out for this week include Tuesday’s CPI figures, Wednesday’s Bank of England inflation report and Friday’s retail sales data.

The Pound is presently trading against the Euro in the region of 1.1784 and is trading against the US Dollar in the region of 1.5755

US Dollar

On Friday figures compiled by the Commerce Department showed that the US trade deficit narrowed by significantly more than forecast. A surge in petroleum exports helped knock the deficit to 38 billion Dollars – the lowest level recorded for three years. Following the news the ‘Greenback’ continued to trade higher against the Euro, but in the hours that followed investor appetite for risk strengthened and the US Dollar lost ground against higher yielding currencies, like the Australian Dollar. The next piece of US news likely to trigger volatility is the monthly budget statement for January, released tomorrow.

The US Dollar is presently trading against the Pound in the region of 0.6346 and is trading against the Euro in the region of 0.7484

Euro

European Central Bank President Mario Draghi’s warnings regarding the strength of the Euro kept the currency trading lower against the majority of its peers over the weekend. Although global economic data releases are few and far between today the release of the Group of 30 Economy Report and the meeting of Eurozone finance ministers are likely to cause movement in the common currency.

The Euro is presently trading against the Pound in the region of 0.8487 and is trading against the US Dollar in the region of 1.3373

Australian Dollar

The latest figures released by the Australian Statistics Bureau showed that home lending in the South Pacific nation fell in December. This additional sign of Australian economic weakness caused the ‘Aussie’ to fall against several of its main peers. Investors will now be looking ahead to tomorrow’s Australian Business Confidence report for January.

The Australian Dollar is presently trading against the Pound in the region of 0.6528, is trading against the Euro in the region of 0.7698 and is trading against the US Dollar in the region of 1.0289

New Zealand Dollar

Today the main cause of movement in the New Zealand Dollar is likely to be card spending figures for the nation, which are expected to show improvement. With further important economic news for New Zealand thin on the ground this week movement in the ‘Kiwi’ is likely to be the result of global developments.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5281, is trading against the Euro in the region of 0.6242 and is trading against the US Dollar in the region of 0.8324

Canadian Dollar

The only pieces of Canadian economic news to watch out for this week are manufacturing shipment and existing home sales figures, both scheduled for release on Friday. ‘Loonie’ fluctuations could also be caused by developments in the US, Europe and Asia.

The Canadian Dollar is presently trading against the Pound in the region of 0.6314, is trading against the Euro in the region of 0.7439 and is trading against the US Dollar in the region of 0.9956

These exchange rates were correct as of 9.18 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.