UK inflation held at the highest rate for 8 months

money_united_states_dollars_macro

Pound Sterling

The expectation that this morning’s report will show UK inflation held at the highest rate for 8 months in January led to the Pound posting modest gains against the Euro this morning. Sterling managed to retain its advance despite a gauge of UK home prices declining from minus 1 to minus 4. The Pound was relatively unchanged against the US Dollar.

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

A lack of significant economic news tempered ‘Greenback’ movement yesterday, but the American Dollar did experience a notable upswing against safe-haven rival the Japanese Yen. After rebounding at the close of last week the Japanese Yen declined significantly against the US Dollar following comments made by Japanese officials concerning the Asian currency. Although only US news of low volatility is scheduled for release today ‘Greenback’ fluctuations could occur as a result of developments in the UK and Europe.

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

Prior to the meeting of Eurozone finance ministers in Brussels the Euro strengthened against its British and Japanese counterparts, despite France voicing its concerns regarding the strength of the common currency. Although exchange rates were one point of discussion at this latest gathering it was intimated that the issue would be discussed more fully at the G20 meeting on Friday. With positive UK news expected this morning the Euro recorded modest losses against the Pound.

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

With investors estimating how much benchmark rates will be slashed by the Reserve Bank of Australia the ‘Aussie’ tumbled to beyond a three-month low against its American counterpart. The Australian Dollar also fell against the Japanese Yen after climbing by 1.2 per cent against the broadly softening safe-haven currency earlier in the day. The next piece of influential data comes this evening in the form of the Westpac Consumer Confidence Index for February.

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

Although the New Zealand Dollar slid against the Japanese Yen the ‘Kiwi’ was bolstered by a report which showed that card purchases in the South Pacific nation increased for a fourth month, with the value of transactions increasing 0.3 per cent. A separate report also showed that house prices in New Zealand increased by 7.2 per cent in January compared to the same period of 2012.

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 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.