Euro 70 pips higher against US Dollar

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Pound Sterling

The Pound is in line to experience significant volatility today as a result of several key pieces of news for the UK. Already this morning Prime Minister David Cameron has promised that if re-elected he will push through a referendum regarding the EU within the next four years, allowing voters to decide whether or not they want Britain to bolt. Following the news Sterling modestly declined, but with the Bank of England minutes and jobless claims data out this morning further fluctuations can be expected.

The Pound is presently trading against the Euro in the region of 1.1909 and is trading against the US Dollar in the region of 1.5832

US Dollar

After a slow start to the week the US Dollar posted losses against its riskier counterparts during European trade, responding to the better-than-forecast German ZEW Economic Sentiment figure. The Pound was also able to snap a recent run of declines against its American competitor, and climbed nearly 60 pips before a downward correction later in the day. With US economic news thin on the ground the most pertinent causes of ‘Greenback’ movement will be news out of Canada, the UK and Europe.

The US Dollar is presently trading against the Pound in the region of 0.6316 and is trading against the Euro in the region of 0.7519

Euro

A far stronger-than-expected German ZEW economic Sentiment figure instigated a bout of risk taking in the marketplace, initially pushing the Euro 70 pips higher against its American rival. The gains proved short lived however, with the common currency falling back against the US Dollar and posting notable losses against the British Pound. Developments in the UK are likely to trigger Euro fluctuations, but today’s Eurozone 3Q government debt and consumer confidence figures are also of interest.

The Euro is presently trading against the Pound in the region of 0.8400 and is trading against the US Dollar in the region of 1.3297

Australian Dollar

After gaining against its US counterpart for two-days the Australian Dollar fell back following the release of an unexpectedly low increase in Australian consumer prices. This latest result has given the nation’s central bank more room to continue cutting borrowing costs and caused the ‘Aussie’ to fall vs. the majority of its currency rivals. News of the Bank of Japan’s delayed monetary easing schedule also forced the South Pacific currency lower against the Japanese Yen for a fourth day. In the absence of Australian economic news fluctuations in the ‘Aussie’ will occur as a result of international developments.

The Australian Dollar is presently trading against the Pound in the region of 0.6670, is trading against the Euro in the region of 0.7937 and is trading against the US Dollar in the region of 1.0550

New Zealand Dollar

A worse-than-forecast Australian inflation report saw the ‘Kiwi’ advance on its broadly softening ‘Aussie’ rival, climbing from 79.53 Australian cents to 79.78 Australian cents over the course of the day. The New Zealand Dollar also traded slightly higher against its American counterpart but continued to weaken against the safe-haven Japanese Yen. The main information to watch out for today is this evening’s PMI index for New Zealand.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5316, is trading against the Euro in the region of 0.6316 and is trading against the US Dollar in the region of 0.8428

Canadian Dollar

With economists forecasting that the Bank of Canada will hold its benchmark interest rate at one per cent today the ‘Loonie’ dropped close to the lowest level against the US Dollar seen so far in 2013. The Canadian Dollar also declined against the majority of its most traded peers following a disappointing retail sales report for the nation. The main points of interest today are the Bank of Canada rate decision and monetary policy report.

The Canadian Dollar is presently trading against the Pound in the region of 0.6368, is trading against the Euro in the region of 0.7588 and is trading against the US Dollar in the region of 1.0091

 

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.