Euro advances on ‘Greenback’

Pound Sterling

On Friday the Pound plummeted to a five-week low against the Euro after the latter currency broadly firmed following Germany’s approval of the latest Greek bailout. Sterling was able to recover slightly as the Euro dipped after Moody’s cut its rating on the European Stability Mechanism from Aaa to Aa1, but an improved global outlook and falling London House Prices kept the common currency trading higher on Monday morning. Of particular interest today are UK Manufacturing PMI figures.

The Pound is presently trading against the Euro in the region of 1.2310 and is trading against the US Dollar in the region of 1.6042

US Dollar

On Friday the US Dollar posted notable gains against several of its most traded peers as the attractiveness of safe-assets was heighted following the credit rating downgrade of two key EU financial institutions. However, after China’s Purchasing Managers’ Survey rose from 49.5 to 50.5 boosted confidence in the nation’s manufacturing sector caused the ‘Greenback’ to drop against several of its higher-yielding rivals, including the Euro. The pieces of data most likely to trigger volatility in the US Dollar today are the USD ISM Manufacturing and final Market PMI figures for November.

The US Dollar is presently trading against the Pound in the region of 0.6232 and is trading against the Euro in the region of 0.7669

Euro

As positive Chinese data boosted the nation’s economic outlook and encouraged risk taking among investors the Euro was able  to advance, achieving a six-week high against the US Dollar. The development meant that the common currency was able to recoup losses achieved after Eurozone rescue funds received a credit downgrade at the close of last week. Of interest this today are the Eurozone and German Manufacturing PMI figures and the Italian Budget Balance statistics.

The Euro is presently trading against the Pound in the region of 0.8117 and is trading against the US Dollar in the region of 1.3028

Australian Dollar

Although Chinese data bolstered optimism regarding the economic recovery of the world’s second largest economy the Australian Dollar was unable to benefit from China’s improved outlook. Lower-than-forecast local retail sales made it all but certain that the Reserve Bank of Australia will cut rates tomorrow and this triggered a dip in the ‘Aussie’. Tomorrow investors will be focusing on the Australian 3Q Current Account Balance and the all important RBA Rate decision.

The Australian Dollar is presently trading against the Pound in the region of 0.6488, is trading against the Euro in the region of 0.7985 and is trading against the US Dollar in the region of 1.0411

New Zealand Dollar

Lax consumer spending in the South Pacific tempered ‘Kiwi’ movement and kept the currency little changed against its Australian counterpart. A lack of influential economic news for New Zealand means that the ‘Kiwi’ is unlikely to see significant fluctuations until the RBA Rate announcement tomorrow. A series of disappointing data releases for Australia has led industry experts to expect that the central bank may cut interest rates by more than initially expected. If this occurs we can expect volatility in the market place.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5116, is trading against the Euro in the region of 0.6288 and is trading against the US Dollar in the region of 0.8204

Canadian Dollar

On Friday US data showed a drop in consumer spending. This potential sign of faltering in the economic recovery of Canada’s largest export market caused the ‘Loonie’ to post marginal declines against the ‘Greenback’. The Canadian Dollar was held lower after figures showed that 3Q Canadian economic growth was poor and the currency ended the week 0.2 per cent down on its American counterpart. With the Bank of Canada delivering its rates decision tomorrow significant movement can be expected.

The Canadian Dollar is presently trading against the Pound in the region of 0.6279, is trading against the Euro in the region of 0.7734 and is trading against the US Dollar in the region of 1.0076

 

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.