Euro falls against main rivals

Pound Sterling

For the second consecutive day the Pound gained against its European cousin. After a two day meeting European finance ministers failed to come to an agreement regarding the allocation of Greek aid and the Pound was able to advance on the Euro as a result. However, the British currency declined against the US Dollar for the first time in five days as investors await today’s publication of the minutes from the latest Bank of England meeting. Also of interest today is UK Public Finances and Public Sector Net Borrowing figures.

The Pound is presently trading against the Euro in the region of 1.2460 and is trading against the US Dollar in the region of 1.5902

US Dollar

The US Dollar was able to break away from Monday’s bearish trend after renewed European uncertainty pushed investors towards safe-haven assets. Concerns that the opposition party will win Japan’s upcoming elections also resulted in the ‘Greenback’ posting a seven-month high against the Japanese Yen. Today investors will be focusing on US Unemployment Claims, which analysts are expecting to come in above last week’s figure.

The US Dollar is presently trading against the Pound in the region of 0.6285 and is trading against the Euro in the region of 0.7836

Euro

The continued failure of European finance ministers to agree on a suitable debt-reduction plan for troubled Greece caused the Euro to tumble against almost all of its main competitors, including the British Pound and US Dollar. Further fluctuations in the common currency are likely in the hours ahead, particularly if additional announcements relating to the Greek bailout occur.

The Euro is presently trading against the Pound in the region of 0.8026 and is trading against the US Dollar in the region of 1.2763

Australian Dollar

Higher-risk currencies like the Australian Dollar suffered as a result of the lack of resolution regarding Greek aid. A drop in Japanese imports also knocked Australia’s economic outlook and contributed to the ‘Aussie’s decline against several of its most traded peers. Volatility in the South Pacific currency could follow tomorrow’s release of Japanese and European data.

The Australian Dollar is presently trading against the Pound in the region of 0.6521, is trading against the Euro in the region of 0.8123 and is trading against the US Dollar in the region of 1.0373

New Zealand Dollar

Concerns in Europe and Japan saw the New Zealand Dollar fall against its primary counterparts and its decline was hastened after the Fonterra Cooperative group stated whole-milk powder prices had plummeted to a seven-week low. It had been generally expected that European finance ministers would come to a ‘definite decision’ concerning Greece so the further delay triggered significant market volatility. Heightened risk aversion saw the ‘Kiwi’ drop against the Euro, the Pound and the Australian and US Dollars.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5124, is trading against the Euro in the region of 0.6373 and is trading against the US Dollar in the region of 0.8142

Canadian Dollar

After the International Monetary Fund announced that they were considering making the Canadian Dollar a reserve currency it soared to a month high against the US Dollar, but its gains were to prove short lived. After the price of crude oil dropped from its four-week high the ‘Loonie’ recorded losses against the majority of its most traded peers, though declines were tempered by yesterday’s news. The Canadian currency could see movement tomorrow following the release of Canadian Retail Sales figures for September.

The Canadian Dollar is presently trading against the Pound in the region of 0.6308, is trading against the Euro in the region of 0.7858 and is trading against the US Dollar in the region of 1.0029

 

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.