Euro fell against US Dollar

Pound Sterling

In light of less-than-impressive UK data Sterling posted declines against its US rival for the third consecutive week. However, Pound volatility can be expected in the week ahead with significant UK data due for release every day.  As well as the disclosure of the Bank of England meeting minutes investors will be watching UK producer, retail price and consumer inflation numbers as well as retail sales growth figures and jobless claims change data.

The Pound is presently trading against the Euro in the region of 1.2391 and is trading against the US Dollar in the region of 1.6066

US Dollar

The US Dollar experienced a brief boost following Friday’s release of PPI data but the currency maintained a relatively bearish relationship with the majority of its competitors. Several pieces of key US data are in line for release this week. In the hours ahead the US Core Retail Sales are expected to show a drop in consumer spending. The results of US unemployment claims and existing home sales figures (scheduled for the end of the week) will also be eagerly awaited by investors.

The US Dollar is presently trading against the Pound in the region of 0.6229 and is trading against the Euro in the region of 0.7723

Euro

For the first time in several days the Euro has fallen against its American rival. The common currency also recorded losses against 9 of its other main counterparts. With leaders of the 17-nation currency bloc scheduled to meet this week to discuss debt fighting methods investors are clearly taking a cautious approach to the Euro. Other factors dampening the Euro’s appeal include an expected decline in German investor confidence and the still unresolved Spanish bailout situation.

The Euro is presently trading against the Pound in the region of 0.8067 and is trading against the US Dollar in the region of 1.2947

Australian Dollar

Towards the end of last week the ‘Aussie’ recorded declines against the majority of its peers and it remains close to a three-month low. The poor performance of the Australian Dollar can be partly attributed to the RBA’s interest rate cut and a recent report which showed that the nation’s exports to China fell by 18 per cent in September. However, futures traders are predicting that the ‘Aussie’ will soon strengthen against its American counterpart. Changing leadership in China and growing expectations that the Asian nation will employ stimulus methods could also underpin the Australian Dollar.

The Australian Dollar is presently trading against the Pound in the region of 0.6371, is trading against the Euro in the region of 0.7899 and is trading against the US Dollar in the region of 1.0227

New Zealand Dollar

Just like its neighbouring currency the New Zealand Dollar recorded declines against several of its main trading partners. Investors are maintaining a wary relationship with riskier assets as the issue of whether or not Spain will seek a bailout trundles on. Indications of the Australian economy slowing have also negatively affected the ‘Kiwi’. Meanwhile, a survey compiled by Reuters News agency showed that New Zealand’s consumer prices are expected to have dimmed to an annual pace of 1.1 per cent in the third quarter.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5084, is trading against the Euro in the region of 0.6294 and is trading against the US Dollar in the region of 0.8146

Canadian Dollar

The Canadian Dollar ended last week slightly weaker than it started but still demonstrated resilience in the face of continuing uncertainty in the financial markets. Despite Canadian stocks recording their steepest weekly declines for four months and the Spanish situation remaining tenuous the Canadian currency lost little ground against its US rival. As the ‘Loonie’ is particularly sensitive to China’s economic condition the nations change of leadership could lead to the currency experiencing fluctuations in the week ahead.

The Canadian Dollar is presently trading against the Pound in the region of 0.6355, is trading against the Euro in the region of 0.7876 and is trading against the US Dollar in the region of 1.0217

 

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.