Euro could recoup losses as trade progresses

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Pound Sterling

With UK house price growth accelerating in August and economists expecting a gauge of local manufacturing to show that the sector expanded last month, the Pound was able to strengthen to within touching distance of a two-month high against the Euro. Governor of the Bank of England Mark Carney’s press briefing (at 12:30) will also be of interest.

GBP/EUR is trading in the region of 1.1766 and GBP/USD is trading in the region of 1.5550

US Dollar

With US markets closed for the nation’s Labour Day celebrations ‘Greenback’ movement could be limited in the hours ahead, although investors will continue to pay close attention to developments in Syria. Anticipation surrounding tomorrow’s US ISM manufacturing gauge could also impact the safe-haven asset.

USD/GBP is trading in the region of 0.6428 and USD/EUR is trading in the region of 0.7565

Euro

Ahead of the release of manufacturing figures for Germany and the Eurozone the Euro was trading in the region of a two-month low against the Pound and was slightly softer against the US Dollar. However, with manufacturing in the Eurozone soaring to a 26-month high the Euro could recoup losses as trade progresses.

EUR/GBP is trading in the region of 0.8499 and EUR/USD is trading in the region of 1.3216

Australian Dollar

After a report showed that manufacturing in China, Australia’s main trading partner, hit a 16-month high the ‘Aussie’ largely recovered last week’s losses. The South Pacific asset gained on the majority of its rivals and is poised to post its most significant advance against the Yen since May. The currency was also supported as local data revealed that Australian building approvals climbed by twice as much as expected.

AUD/GBP is trading in the region of 0.5777, AUD/EUR is trading in the region of 0.6796 and AUD/USD is trading in the region of 0.8984

New Zealand Dollar

With New Zealand’s terms of trade rising and its export outlook being boosted by positive Chinese data, the ‘Kiwi’ surged by the most for five weeks against the US Dollar. The New Zealand Dollar advanced by 1.1 per cent against the ‘Greenback’ and 2.0 per cent against the Yen as the Island nation’s terms of trade climbed by 4.9 per cent in the second quarter.

NZD/GBP is trading in the region of 0.5012, NZD/EUR is trading in the region of 0.5913 and NZD/USD is trading in the region of 0.7802

Canadian Dollar

Syria speculation and disappointing local data saw the Canadian Dollar decline for a third week on Friday. The commodity driven asset is likely to experience notable movement on Wednesday following the Bank of Canada’s rate decision.

CAD/GBP is trading in the region of 0.6105, CAD/EUR is trading in the region of 0.7182 and CAD/USD is trading in the region of 0.9493

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.