Euro Begins Week Close to 6-Week Low

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Pound Sterling

While the Pound begins the week strongly against the Euro, the British currency has largely retained declines posted against the US Dollar last week as a result of mounting speculation regarding Fed tapering. If today’s UK construction PMI fails to meet estimates Sterling could soften in the hours ahead.

GBP/EUR is trading in the region of 1.1806 and GBP/USD is trading in the region of 1.5932

US Dollar

Friday’s surprisingly strong manufacturing report for the US gave the ‘Greenback’ an impressive boost and the American currency rallied against the majority of its most traded peers. If today’s US factory orders data also exceeds expectations, further adding to the case for the Federal Reserve tapering stimulus before the end of the year, the US Dollar’s bullish attitude could continue.

USD/GBP is trading in the region of 0.6278 and USD/EUR is trading in the region of 0.7410

Euro

The common currency slid to a six-week low against the US Dollar as the European session opened. While this morning’s better-than-expected manufacturing PMI for Germany could lend the Euro support as trading continues, the disappointing Italian and French manufacturing reports could weigh on the European asset.

EUR/GBP is trading in the region of 0.8469 and EUR/USD is trading in the region of 1.3493

Australian Dollar

An impressive surge in Australian retail sales lifted the ‘Aussie’ during local trading and the South Pacific asset advanced on its US and New Zealand counterparts ahead of the upcoming Reserve Bank of Australia rate decision. If the central bank indicates that an additional rate cut could occur the Australian Dollar may slump.

AUD/GBP is trading in the region of 0.5960, AUD/EUR is trading in the region of 0.7038 and AUD/USD is trading in the region of 0.9495

New Zealand Dollar

Although New Zealand’s ANZ commodity price data showed a 1.3 per cent increase in October, the ‘Kiwi’ largely held on to recent losses as the Australasian session came to a close. Additional New Zealand Dollar movement may be inspired by US developments and Chinese HSBC/Markit services PMI.

NZD/GBP is trading in the region of 0.5198, NZD/EUR is trading in the region of 0.6125 and NZD/USD is trading in the region of 0.8293

Canadian Dollar

The Canadian Dollar experienced mixed trading last week as fluctuating commodity prices and US speculation triggered ‘Loonie’ declines while positive Canadian GDP lent the currency support. An absence of Canadian news could limit ‘Loonie’ movement today, but US developments will be of interest.

CAD/GBP is trading in the region of 0.6028, CAD/EUR is trading in the region of 0.7117 and CAD/USD is trading in the region of 0.9602

These exchange rates were correct as of 9:20 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.