Disappointing confidence data could wear on the Euro

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Pound Sterling

While the Pound continues to trade lower against the Euro after recording a 1.1 per cent weekly decline on Friday, the British asset has strengthened moderately against the US Dollar as ongoing political concerns weigh on the ‘Greenback’. Sterling is also deriving support from the expectation that the Bank of England will refrain from altering policy when it meets this week.

GBP/EUR is trading in the region of 1.1814 and GBP/USD is trading in the region of 1.6047

US Dollar

With the Federal shutdown entering its seventh day and less than two weeks to the fiscal cliff deadline, the ‘Greenback’ is feeling the pressure. The USD/JPY pairing posted a notable decline overnight while the American asset also softened against safe-haven rival the Swiss Franc. Today’s US consumer credit report will be of interest, but investors will also be focusing on any political developments.

USD/GBP is trading in the region of 0.6235 and USD/EUR is trading in the region of 0.7368

Euro

Last week’s stronger-than-forecast employment, retail sales and services data for the Eurozone boosted the common currency and helped it to strengthen notably against peers like the Pound. However, with today’s Sentix investor confidence index for the currency bloc failing to meet estimates the common currency could shed recent gains in the hours ahead.

EUR/GBP is trading in the region of 0.8464 and EUR/USD is trading in the region of 1.3580

Australian Dollar

Although Australia’s AiG Performance of Construction index showed improvement, climbing from 43.7 to 47.6 last month, the ‘Aussie’s bearish relationship with its US peer continued as the ongoing federal shutdown kept the pressure on higher-risk assets.

AUD/GBP is trading in the region of 0.5853, AUD/EUR is trading in the region of 0.6915 and AUD/USD is trading in the region of 0.9397

New Zealand Dollar

Once again New Zealand’s Finance Minister Bill English has stressed the negative impact the ‘Kiwi’s current exchange rate could have on national exports. After he commented that the current exchange rate is ‘still too high’ the Kiwi declined against the US Dollar and Pound.

NZD/GBP is trading in the region of 0.5189, NZD/EUR is trading in the region of 0.6141 and NZD/USD is trading in the region of 0.8273

Canadian Dollar

The ‘Loonie’ ended last week on a low after US political fears softened Canada’s growth prospects and weighed on the commodity-driven asset. While US news is likely to be the main driver of currency movement for the foreseeable future, today’s domestic data (Canadian building permits) will also be of interest.

CAD/GBP is trading in the region of 0.6035, CAD/EUR is trading in the region of 0.7130 and CAD/USD is trading in the region of 0.9686

These exchange rates were correct as of 09:40 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.